USD/CAD Set For Further Gains In Light of Bullish Candlestick 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
As suggested in yesterdays’ candlesticks report USD/CAD is poised for another run on the critical 1.1000 handle. This is supported by the formation of a Bullish Engulfing pattern on the daily, which has led to a quick about-face for the pair. A push above 1.1000 would favor new long positions with a potential target offered by the 2014 highs near 1.1280.
USD/CAD: Bullish Engulfing Pattern Suggests Further Gains
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 candlestick near 1.0910. 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: Doji Puts Bears In Doubt
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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