USD/CAD Crawls Under 1.0900 Floor Following Bearish Engulfing Pattern
- USD/CAD Technical Strategy: Sidelines Preferred
- Push Past The 1.0900 Barrier Opens The 1.0810 Mark
- Key Reversal Pattern Offered Turning Point Signal
USD/CAD has cleared the critical 1.0900 barrier following the emergence of a Bearish Engulfing candlestick pattern near the pair’s recent highs. The downside break suggests a small top and casts the immediate risk lower for a retest of the May lows at 1.0810. A climb back over the 1.0900 hurdle would be required to negate a bearish technical bias.
USD/CAD: Bears Wrestle Control Of Prices
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Scrutinizing the four hour chart reveals a Bullish Engulfing formation near 1.0880. However, the key reversal pattern failed to find follow-through which casts doubt over the potential for an intraday recovery for USD/CAD. A push through intraday buying support would set the scene for descent on 1.0815.
USD/CAD: Bullish Pattern Fails To Yield Recovery At Intraday Support
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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