USD/CAD Journey Higher May Endure With Reversal Candlesticks Lacking
- USD/CAD Technical Strategy: Longs Preferred
- Bullish Engulfing Pattern Emerges Following Push Past 1.1000
- Breakout Of Critical Barrier Opens Run Towards 1.1270
USD/CAD’s ascent towards its 2014 high may be maintained following the leap over the critical 1.980/1.1000 hurdle. A Bullish Engulfing candlestick formation has been left in its wake. While the pattern is technically classed as ‘reversal signal’ it may also offer an indication of building upside momentum. Alongside signs of an emerging uptrend this opens the door to an ascent on 1.1270. A daily close back below the breakout point would invalidate the signal and negate a bullish bias for the pair.
USD/CAD: Targeting 2014 High Amid Absence Of Bearish Patterns
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a similar picture to the daily after a Shooting Star formation failed to find follow-through. This has left a void of key reversal patterns which hints at the prospect of further gains for the pair.
USD/CAD: Traders Look Past Bearish Pattern
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.