Forex Strategy - USD/CAD Hammer Hints At Continued Consolidation
- USD/CAD Technical Strategy: Sidelines preferred
- Range on the daily remains in force (1.0900 – 1.1200)
- Hammer on the four hour chart hints at a bounce ahead
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.
USD/CAD: Upside Momentum Fading
Daily Chart - Created Using FXCM Marketscope 2.0
As noted in yesterday’s report buyers were likely to keep prices supported at the 50% Fib Retracement Level during intraday trade. This has resulted in the formation of a Hammer candlestick which is indicating the possibility of a bounce in the session ahead.
USD/CAD: Hammer Hints At Bounce
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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