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Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Awaiting Clearer Signals Near The 1.0980 Barrier
  • BearishPattern Fails To Find Follow-Through

USD/CAD continues to tease traders near the critical 1.0980 barrier as the pair overlooks a Bearish Engulfing pattern on the daily. The wavering around the key level leaves the pair at a crossroads. A daily close below 1.0980 would warn of a correction to the psychologically-significant 1.0900 handle.

USD/CAD: Keeping Traders In Suspense Near Critical Barrier

USD/CAD Remains At A Crossroads Near Critical 1.0980 Barrier

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

An examination of the four hour chart below reveals a Bearish Engulfing pattern is emerging after a failure to breach the 1.1000 ceiling. If confirmed by a successive down-period it may offer an early warning for a retreat to intraday support at 1.0932.

USD/CAD: Bearish Pattern Emerging In Intraday Trade

USD/CAD Remains At A Crossroads Near Critical 1.0980 Barrier

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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