USDCAD: Bearish Candle Setup Still in Play
Prices put in a Bearish Engulfing candlestick pattern below resistance at a falling trend line set from the June 4 high, hinting a move lower is ahead. Initial support lines up at 0.9743, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 0.9654. Trend line resistance is now at 0.9839. Trend line resistance is now at 0.9870. Risk/reward considerations argue against entering a trade at current levels with prices so close to support and we will stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail firstname.lastname@example.org. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.