USD/CAD Remains At A Crossroads Near Critical 1.0980 Barrier

By DailyFx | August 26, 2014 AAA

DailyFX.com -

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

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Investing

    USD/CAD: 2015 Forex Forecast

  2. Forex News

    Trade Inside Bars with OCO Orders

  3. Forex News

    USD/CAD to Face Fresh December Highs on Dismal Canada CPI

  4. Forex News

    USD/CAD Technical Analysis: 3-Week Uptrend Threatened

  5. Forex News

    USD/CAD Technical Analysis: Standstill Sub-1.17 Continues

Trading Center