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.
USD/CAD: Bullish Engulfing Pattern Suggests Further Gains
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
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.