USD/CAD Open To Further Falls Following Break Below Range-Bottom
- USD/CAD Technical Strategy: Shorts Preferred
- Prices break below range-bottom at 1.0900
- Absence of bullish signal suggests further declines
USD/CAD has finally broken below the critical 1.0900 handle that had acted to support prices since mid-January. While there are likely slivers of support at nearby psychological points like 1.0800, the next definitive level to consider is some distance away at 1.0590. With a bullish reversal signal missing on both the daily and four hour timeframes a bearish technical bias is offered.
USD/CAD: Breaks Below Range-Bottom At 1.0900
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart, the Bullish Engulfing pattern noted yesterday failed to receive confirmation from a successive up-period. With a key reversal signal notably absent in intraday trade, there may be further falls ahead for the Loonie.
USD/CAD: Bullish Engulfing Pattern Fails To Receive Confirmation
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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