News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex Strategy - USD/CAD Inverted Hammer Hints At Intraday Bounce

Forex Strategy - USD/CAD Inverted Hammer Hints At Intraday Bounce

David de Ferranti, Currency Analyst

Talking Points

  • 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

Forex-Strategy---USDCAD-Inverted-Hammer-Hints-At-Intraday-Bounce_body_Picture_2.png, Forex Strategy - USD/CAD Inverted Hammer Hints At Intraday Bounce

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

Forex-Strategy---USDCAD-Inverted-Hammer-Hints-At-Intraday-Bounce_body_Picture_1.png, Forex Strategy - USD/CAD Inverted Hammer Hints At Intraday Bounce

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

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

DISCLOSURES