USD/CAD Bearish Pattern Emerges After Failing To Clear 1.0980 Hurdle
- USD/CAD Technical Strategy: Sidelines Preferred
- Bearish Engulfing Formation Awaiting Confirmation
- Buying Interest Remains While Above 1.0900
USD/CAD’s pullback from the critical 1.0980 hurdle has yielded a Bearish Engulfing formation which awaits confirmation. A retreat under the 1.0900 floor would act to validate the key reversal signal and suggest the potential for a decline to the 1.0810 mark. However, at this stage signs of an uptrend remain intact for the pair, which suggests the possibility for a retest of the recent highs should not be neglected.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Scrutinizing the four hour chart reveals a Doji formation near the psychologically-significant 1.0900 handle. While not a key reversal pattern the candlestick suggests hesitation from the bears to lead USD/CAD lower. Similarly to the daily, this indicates the potential for a retest of the recent highs.
USD/CAD: Doji Demonstrates Hesitation By The Bears
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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