Forex Strategy - USD/CAD Inverted Hammer Hints At Intraday Bounce
- USD/CAD Technical Strategy: Range trading preferred
- Range on the daily remains in force (1.0900 – 1.1200)
- Inverted Hammer hints at intraday bounce
USD/CAD buyers have once again acted to keep the pair above 1.1050 overnight, which may in turn be presenting a short-term range-trading opportunity (see four hour chart). This is within the context of a continued consolidation for the CAD between 1.0900 and 1.1200.
USD/CAD: Consolidation Continues
Daily Chart - Created Using FXCM Marketscope 2.0
The most recent USD/CAD candlesticks report highlighted fading upside momentum for the pair based on several Dojis on the four hour timeframe. Following the dip to support near 10.050 a new long entry may be afforded with a nearby target of 1.1100. The potential for an intraday bounce is supported by a bullish reversal signal offered by the Inverted Hammer formation pictured below.
USD/CAD: Potential for Intraday Bounce
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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