Forex Strategy - USD/CAD Eyes Range-Top At 1.1200 Post Bullish Candle
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- 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.
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Hourly Chart - Created Using FXCM Marketscope 2.0
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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