- USD/CAD Technical Strategy: Longs Preferred
- Absence of Bearish Signals Suggests Gains May Continue
- Daily Close Above Nearby Resistance To Open 1.1040
USD/CADis within striking distance of the 1.0960 mark, which may see some pre-emptive profit-taking from traders. However, with bearish reversal signals seemingly lacking at this point, the potential for a correction may be limited. A daily close above the nearby 1.0960 ceiling could generate a push to the April highs near 1.1040.
USD/CAD: 1.0960 Target Draws Nearer With Reversal Signals Absent
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A similar narrative to the daily is evident on the four hour timeframe after a Bearish Engulfing formation failed to find validation from an ensuing down-period. This casts doubt on a potential correction for the pair over the session ahead. A retreat below the 1.0900 floor would be required to shift the immediate risk to the downside.
USD/CAD: Bearish Patterns Fail To Find Follow-Through
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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