News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
USD/CAD Recovery Looks Doubtful With Reversal Signals Missing

USD/CAD Recovery Looks Doubtful With Reversal Signals Missing

David de Ferranti, Currency Analyst

Talking Points

  • USD/CAD Technical Strategy: Shorts Preferred
  • Absence of reversal signals casts doubt on bounce
  • December 2013 lows near 1.0560 in focus

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.

USD/CAD: Set To Extend Declines Following Close Below Support

USD/CAD Recovery Looks Doubtful With Reversal Signals Missing

Daily Chart - Created Using FXCM Marketscope 2.0

An examination of the four hour chart reveals a Bearish Engulfing pattern near 1.7000 which signaled USD/CAD was set to resume its downward trajectory. With key reversal patterns absent in intraday trade a recovery appears doubtful.

USD/CAD: Recovery Doubtful With Bullish Patterns Absent

USD/CAD Recovery Looks Doubtful With Reversal Signals Missing

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.

DISCLOSURES