USD/CAD Targets 1.1000 Backed By Bullish Engulfing Pattern
- USD/CAD Technical Strategy: Longs Preferred
- Bullish Engulfing pattern suggests gains to continue
- Break above resistance 1.1000 to open advance on 1.1200
After staging a false breakout below 1.0900 the USD/CAD bulls have returned in force. The Bullish Engulfing pattern on the daily suggests the gains may be set to continue. A break above nearby resistance at 1.1000 would support new long positions, and open an advance to the psychologically-significant 1.1200 handle.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; it is evident the bulls were able to regain control of prices following some signs of hesitation signaled by the Doji candlesticks near 1.0900. The 1.1000 handle will be in focus during the session ahead given it is likely to prompt some sellers to emerge. However we’re yet to see a bearish engulfing pattern form, which suggests an intraday dip may be unlikely at this stage.
USD/CAD: Bulls Return, Putting 1.1000 In focus
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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