USD/CAD Set For Further Declines With Bullish Candlestick Lacking
- USD/CAD Technical Strategy: Shorts Preferred
- Break of range-bottom opens further falls
- Four hour chart shows little signs of a bounce
USD/CAD has finally broken below its range-bottom at 1.0860 with few signs a potential reversal on the daily. With the next noteworthy level of support resting at 1.0590 the pair could be set for extended declines, which may afford new short positions.
USD/CAD: Push Past Support Opens 1.0590
Daily Chart - Created Using FXCM Marketscope 2.0
A Hanging Man formation on the four hour chart has resulted in extended declines for USD/CAD. A bullish reversal signal remains absent suggesting the potential for further falls.
USD/CAD: Hanging Man Delivers Drop
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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.