DailyFX.com -

Talking Points

  • 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

USD/CAD Reversal Signals Absent With 1.0960 Hurdle Nearby

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

USD/CAD Reversal Signals Absent With 1.0960 Hurdle Nearby

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 Finds Support During Wednesday Session

  2. Forex News

    USD/CAD Technical Analysis: Pullback Stalls at Support

  3. Forex News

    Fed Doesn’t Relieve Anxiety, GDP Will Take Shot at Dollar and Equities

  4. Forex News

    USDCAD Plummets Following US Oil Inventories Data

  5. Forex News

    US Dollar Risks to the Downside on a Break of these Key Levels

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!