USD/CAD Eyeing Break Below Support Amid Absence Of Bullish Patterns
- USD/CAD Technical Strategy: Shorts Preferred
- Morning Star fails to find confirmation following pullback
- 1.0630 in focus after failed attempt to breach 1.0700
USD/CAD has retreated from noteworthy resistance at the 1.0700 handle which has left the Morning Star formation on the daily lacking confirmation. With bullish reversal patterns absent for the pair, a break below 1.0630 would pave the way for a drop to 1.0560.
USD/CAD: Set To Extend Declines On Break Below 1.0630
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A glance at the four hour chart reveals a Bearish Engulfing candlestick formation near 1.0670 which helped herald an intraday drop for the pair. Given the close proximity of current prices to support at 1.0620/30 new shorts may be better served on a break lower.
USD/CAD: Bearish Engulfing Pattern Delivers Intraday Drop
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.