USD/CAD Bullish Engulfing Pattern Puts Recovery On The Cards
- USD/CAD Technical Strategy: Sidelines Preferred
- Bullish Engulfing awaits confirmation
- Four hour chart suggests indecision near 1.0900
USD/CAD has reversed course following a break below the 1.0860 mark. The recovery in prices has prompted the emergence of a Bullish Engulfing candlestick pattern which suggests further gains may be possible. However, given past price action suggests the potential emergence of a downtrend, it remains to be seen whether this is a mere corrective bounce within the broader trend. Confirmation from a second successive up-day would help validate the signal.
Daily Chart - Created Using FXCM Marketscope 2.0
Several Doji formations near the critical 1.0900 mark suggests that the bulls have seemingly lost steam in intraday trading. This suggests a push past the resistance level may be preferred before looking at longs.
USD/CAD: Hanging Man Delivers Drop
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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