USD/CAD Set To Extend Declines With Bullish Signals Absent
- USD/CAD Technical Strategy: Shorts Preferred
- Harami fails to find confirmation
- Absence of reversal signals casts doubt on bounce
USD/CAD has broken below the critical 1.0700 handle after a Harami pattern on the daily failed to find confirmation. With bullish signals now absent, doubt is cast on a possible recovery for the pair. The daily close below 1.0700 paves the way for a decline to the 1.0560 mark.
Daily Chart - Created Using FXCM Marketscope 2.0
An examination of the four hour chart reveals the emergence of a Bullish Engulfing pattern, which suggests the bears have loosened their grip on USD/CAD in intraday trade. However, with support-turned-resistance looming overhead at 1.0700, further gains may be limited.
USD/CAD: Bullish Pattern May Find Limited Follow-Through
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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