Forex Strategy: USD/CAD Aiming At 1.0900 Post Hanging Man Formation
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USD/CAD Technical Strategy: Downside break prefers shorts
Longer-term range on the daily remains in force (1.0900 – 1.1200)
Hanging Man candle pattern near 1.1115 signals declines
USD/CAD’s recent consolidation between the range top at 1.1200 and the 1.0900 handle has continued as demonstrated on the daily. However, looking at an intraday time frame like the four hour chart reveals that a breakout below an ascending triangle pattern has occurred, which suggests a short-term bearish technical bias for the pair. This is confirmed by a bearish reversal signal offered by the Hanging Man candlestick formation near 1.1115 which remains in force.
A target is offered by the range-bottom at 1.0900, which also forms the 50% Fib Retracement level from the September to October rally.
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Hourly Chart - Created Using FXCM Marketscope 2.0
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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