USD/CAD Bears Emerge Following Test of Critical 1.1000 Handle
- USD/CAD Technical Strategy: Sidelines Preferred
- Bullish Engulfing pattern results in test of 1.1000 handle
- Shooting Star on the radar, but awaits confirmation
As noted in recent candlesticks reports USD/CAD was poised for a run on the critical 1.1000 mark following the emergence of a Bullish Engulfing pattern on the daily. After probing above the notable level of resistance, the bears are capping further gains for the pair. A Shooting Star formation has also emerged which awaits confirmation from a second-down day before suggesting the potential for a more meaningful correction.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; a Hanging Man near 1.1000 reinforces the importance of the key resistance level. The bearish signal suggests the potential for a dip in intraday trade, with support likely to emerge at the 1.0955 mark.
USD/CAD: Hanging Man Suggests Intraday Dip
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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