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Forex Strategy - USD/CAD Hammer Hints At Continued Consolidation

Forex Strategy - USD/CAD Hammer Hints At Continued Consolidation

David de Ferranti, Currency Analyst

Talking Points

  • 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

Forex_Strategy_-_USDCAD_Hammer_Hints_At_Continued_Consolidation_body_Picture_2.png, Forex Strategy - USD/CAD Hammer Hints At Continued Consolidation

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

Forex_Strategy_-_USDCAD_Hammer_Hints_At_Continued_Consolidation_body_Picture_1.png, Forex Strategy - USD/CAD Hammer Hints At Continued Consolidation

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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