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Forex Strategy - USD/CAD Faces Mixed Technical Signals As Range Remains

Forex Strategy - USD/CAD Faces Mixed Technical Signals As Range Remains

David de Ferranti, Currency Analyst

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Talking Points

  • USD/CAD Technical Strategy: Sidelines preferred
  • Longer-term range on the daily remains in force (1.0900 – 1.1200)
  • Bearish Engulfing formation hints at intraday declines

A Bullish Engulfing formation on the daily chart for USD/CAD is hinting 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.

However, the four hour chart presents a conflicting message. A Bearish Engulfing pattern is hinting at a some declines in the session ahead with support likely to emerge at 1.1053 and 1.1030 (the 50% and 61.8% Fib Levels respectively)

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

Forex_Strategy_-_USDCAD_Faces_Mixed_Technical_Signals_As_Range_Remains_body_Picture_2.png, Forex Strategy - USD/CAD Faces Mixed Technical Signals As Range Remains

4 Hour Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_USDCAD_Faces_Mixed_Technical_Signals_As_Range_Remains_body_Picture_1.png, Forex Strategy - USD/CAD Faces Mixed Technical Signals As Range Remains

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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