- USD/CAD Technical Strategy: Sidelines Preferred
- Morning Starpattern awaiting confirmation
- 1.0700 continues to hold as key resistance
USD/CAD is set for a make-or-break session as the pair awaits confirmation of a Morning Star pattern on the daily. Follow-through from a successive up-day and break above 1.0700 would offer a bullish reversal signal, and pave the way for a recovery to 1.0810.
USD/CAD: Key Reversal Pattern Awaiting Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An examination of the four hour chart reveals a Bullish Engulfing candlestick formation which yielded an intraday recovery for USD/CAD. While resistance looms nearby at 1.0700 a bearish reversal pattern remains absent, which casts doubt on the potential for a pullback.
USD/CAD: Bullish Engulfing Pattern Yields Short-Lived Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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