USD/CAD Hammer Forming Post Test of Critical Support
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- USD/CAD Technical Strategy: Hammer Confirmation to Offer Bullish Bias
- Downtrend continues, suggesting caution needed when trading an upside reversal
- Noteworthy buying support at 1.0900 may limit further declines for the Loonie
USD/CAD has shrugged off previous signs of a potential reversal as the pair continues to decline further. This suggests caution is needed when looking at trading the most recent Hammer candlestick pattern on the daily. Confirmation is needed from a successive up-day to suggest the formation is a more meaningful indication of a turnaround for the Loonie. Important support for the pair lies close by at the psychologically significant 1.0900 handle.
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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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