USDCAD: Rebound or Topping Pattern at Work?
USDCAD staged a modest bounce after putting in a bullish Inverted Hammer candlestick above support at 1.0199, the 38.2% Fibonacci retracement positioned within a hair of the 1.02 figure. The setup hints a recovery may be ahead, but the outlines a Head and Shoulders top below resistance at 1.0422 casts doubt on the bullish scenario. We will stand aside for now until some clarity emerges.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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