USD/CAD Retreats As Bullish Reversal Pattern Fails To Find Confirmation
- USD/CAD Technical Strategy: Shorts Preferred
- Morning Starfails to find confirmation following pullback
- 1.0630 in focus after failed attempt to breach 1.0700
USD/CAD’s pullback from key resistance at 1.0700 has failed to confirm the Morning Star formation on the daily. With the bullish reversal signal lacking validation, the Loonie may retrace its recent gains, putting the recent lows at 1.0630 back in focus.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An examination of the four hour chart reveals a Bearish Engulfing candlestick formation which yielded a slight retreat for USD/CAD. While there appears to be some hesitation from traders denoted by Doji patterns at intraday support near 106.70, the candlesticks may prove insufficient to signal a recovery over the session ahead.
USD/CAD: Bearish Pattern Finds Limited Follow-Through
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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