USD/CAD Piercing Line Pattern Emerges Following Upswing
- 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
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
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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