Forex Strategy: USD/CAD Hammer Hinting At Bullish Reversal
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- USD/CAD Technical Strategy: Hammer Confirmation to Offer Bullish Bias
- Buying support appears to have emerged at the 1.0965 mark
- Hammer formation on daily chart is hinting at a potential bullish reversal
USD/CAD has extended its recent declines alongside broad-based US Dollar weakness. This comes following the formation of a Shooting Star candlestick formation on the daily, which helped to foreshadow the reversal of the preceding uptrend.
Some buying support appears to be present at the 1.0950 level, which coincides with the 38.2% Fib retracement level. Combined with a Hammer formation on the daily, there may be a sign of a bullish reversal. However, this requires confirmation from a successive up-day before suggesting longs for the pair.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
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