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USD/CAD Eyeing Break Below Support Amid Absence Of Bullish Patterns

USD/CAD Eyeing Break Below Support Amid Absence Of Bullish Patterns

2014-07-11 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • 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

USD/CAD Eyeing Break Below Support Amid Absence Of Bullish Patterns

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

USD/CAD Eyeing Break Below Support Amid Absence Of Bullish Patterns

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Market Analyst, DailyFX

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