USD/CAD Faces Make-Or-Break Moment As Reversal Pattern Emerges
- USD/CAD Technical Strategy: Sidelines Preferred
- Morning Starpattern awaiting confirmation
- 1.0700 continues to hold as key resistance
USD/CAD is set for a make-or-break session as the pair awaits confirmation of a Morning Star pattern on the daily. Follow-through from a successive up-day and break above 1.0700 would offer a bullish reversal signal, and pave the way for a recovery to 1.0810.
USD/CAD: Key Reversal Pattern Awaiting Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An examination of the four hour chart reveals a Bullish Engulfing candlestick formation which yielded an intraday recovery for USD/CAD. While resistance looms nearby at 1.0700 a bearish reversal pattern remains absent, which casts doubt on the potential for a pullback.
USD/CAD: Bullish Engulfing Pattern Yields Short-Lived Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
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.