Talking Points
- USD/CAD Technical Strategy: Sidelines Preferred
- Awaiting Clearance of 1.0980 To Open 1.1040
- Bearish Engulfing Pattern Warns Of A Correction
USD/CAD remains at a critical juncture as a Bearish Engulfing pattern warns of a correction from the 1.0980 barrier. However, some skepticism over a sustained retreat may be warranted, given the last such pattern failed to find much follow-through. Buyers are likely to slow the pair’s descent at the psychologically-significant 1.0900 handle.
USD/CAD: Bearish Reversal Signal Emerges Near Critical Barrier
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An early warning sign for an intraday pullback has been offered by an Evening Star formation. Yet further downside potential may be limited by the nearby 1.0932 floor.
USD/CAD: Evening Star Offers Warning Of Intraday Retreat
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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