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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Forex Strategy - USD/CAD Shorts Sought As Range Remains In Play

Forex Strategy - USD/CAD Shorts Sought As Range Remains In Play

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)
  • Awaiting bearish reversal signal on four hour chart

As noted in yesterday’s candlesticks report; USD/CAD presented a range-trade setup following a test of the support level at 1.1050. With the range-top at 1.1160 acting to cap the pair’s advance, a bearish reversal signal on the four hour chart would open a new selling opportunity.

USD/CAD: Consolidation Continues

Forex-Strategy---USDCAD-Shorts-Sought-As-Range-Remains-In-Play_body_Picture_2.png, Forex Strategy - USD/CAD Shorts Sought As Range Remains In Play

Daily Chart - Created Using FXCM Marketscope 2.0

The potential for an intraday bounce for USD/CAD was signaled by the Bullish Engulfing candlestick pattern pictured in the four hour chart below. The formation was made more noteworthy by its appearance near the 61.8% Fib Retracement level. With the bulls seemingly running out of steam, a bearish reversal candle would be taken as a new opportunity to enter short in order to keep playing the range.

USD/CAD: Range-Top Favors Shorts

Forex-Strategy---USDCAD-Shorts-Sought-As-Range-Remains-In-Play_body_Picture_1.png, Forex Strategy - USD/CAD Shorts Sought As Range Remains In Play

4 Hour Chart - Created Using FXCM Marketscope 2.0

It should be noted that the upcoming FOMC March meeting offers substantial fundamental event risk for the US Dollar. The price action resulting from the decision may negate technical signals offered. Traders can watch live coverage of the event in the DailyFX Plus area of the site.

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.