USD/CAD At A Crossroads As A Hammer Emerges At Critical Support
- USD/CAD Technical Strategy: Sidelines Preferred
- Hammer Awaiting Confirmation Near Key Support
- Awaiting Close Below 1.0850 To Suggest A “Double Top”
USD/CAD remains at a crossroads near the 1.0850 mark as a Hammer formation suggests the bulls may be set to return. If confirmed by a successive up-day the bullish reversal signal could prompt a run on the recent highs near 1.0980. Whereas a daily close below the support level would complete a double top formation, and warn of a more sustained pullback towards the psychologically-significant 1.0700 handle.
USD/CAD: Hammer Awaiting Confirmation Near Key Support
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bullish Engulfing formation offered an early indication of an imminent bounce for USDCAD. The key reversal pattern casts the spotlight on intraday resistance at the 1.0900 ceiling.
USD/CAD: Bullish Engulfing Formation Signaled An Intraday Bounce
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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