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Forex Strategy - USD/CAD Eyes Range-Top At 1.1200 Post Bullish Candle

Forex Strategy - USD/CAD Eyes Range-Top At 1.1200 Post Bullish Candle

David de Ferranti, Currency Analyst

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Talking Points

  • USD/CAD Technical Strategy: pending long
  • Longer-term range on the daily remains in force (1.0900 – 1.1200)
  • Breakout from shorter-term consolidation looks imminent

A Bullish Engulfing formation on the daily chart for USD/CAD is hinting at some strength for the pair following a failure to hold below the psychologically-significant 1.1000 handle. However, follow-through has been limited at this stage which suggests the bulls may struggle to push prices back to the 2014 highs at 1.1200.

Drilling down to the hourly chart a short-term range is evident. Selling pressure emerging near 1.1115 may act to restrain further gains for USD/CAD. Clearance of the next level of resistance at 1.1130 would be required before offering a bullish technical bias.

Confirm your chart-based trade setups with the Technical Analyzer.

Forex_Strategy_-_USDCAD_Eyes_Range-Top_At_1.1200_Post_Bullish_Candle_body_Picture_2.png, Forex Strategy - USD/CAD Eyes Range-Top At 1.1200 Post Bullish Candle

Hourly Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_USDCAD_Eyes_Range-Top_At_1.1200_Post_Bullish_Candle_body_Picture_1.png, Forex Strategy - USD/CAD Eyes Range-Top At 1.1200 Post Bullish Candle

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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