Forex Strategy: USD/CAD At A Crossroads Near Range-Bottom At 1.0900
- USD/CAD Technical Strategy: Sidelines Preferred
- Range-bottom at 1.0900 remains on the radar
- Bullish reversal signal near key support would favor longs
After a suspenseful ride with several hints at a bounce, USD/CAD has finally broken below key support at 1.1000. However shorts may be precluded at this stage given that prices still remain within a familiar range between 1.0900 and 1.1300, which leaves noteworthy buying support close by. This puts the Loonie at a crossroads in the session ahead. If a bullish reversal signal emerges playing the range may be the best option, however an extended decline would favor an opportunity to capitalize on a breakout lower.
USD/CAD: Make or Break Moment Near Range-Bottom
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart, an Inverted Hammer candlestick appears to be forming, which may be hinting at a potential bounce. However, the candle has yet to close and receive confirmation from an ensuring up period to be validated.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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