Forex Strategy: USD/CAD Dips As Dark Cloud Cover Dominates Price Action
- USD/CAD Technical Strategy: shorts preferred
- False breakout prompts bearish reversal pattern
- Dark Cloud Cover results in sustained weakness
After staging a breakout above 1.1200 the formation of a Hanging Man candlestick on the daily has resulted in a quick retracement for USD/CAD. The bears are showing little signs of letting up on the pair as a bullish reversal pattern remains absent on both the daily and four hour charts. Buyers may begin to emerge and keep prices supported at 1.1050.
USD/CAD: Hanging Man Scatters Bulls
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart, the Dark Cloud Cover formation that had threatened an intraday correction for USD/CAD has resulted in sustained declines for the pair. A bullish reversal pattern remains absent suggesting an intraday bounce is unlikely at this stage.
USD/CAD: Dark Cloud Cover Delivers Declines
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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