Forex Strategy: USD/CAD Hammer Could Incite Bulls To Run On 1.1100
- USD/CAD Technical Strategy: longs preferred
- Psychologically-significant 1.1000 handle acting to support prices
- Morning Star pattern in intraday trade suggests bounce to 1.1100
USD/CAD has found support near the psychologically-significant 1.1000 handle following several steep days of declines on the back of a Hanging Man candlestick formation. Now with the emergence of a Hammer formation there may be the potential for a retracement higher, which favors longs at current levels.
USD/CAD: Back in Familiar Range
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart, the Morning Star pattern near 1.1000 failed to deliver a rally towards 1.1100 in intraday trade. However, the emergence of a Piercing Line pattern may reignite the bulls to make a run on the 38.2% Fib Retracement Level.
USD/CAD: Piercing Line Emerges Near Key Support
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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