USD/CAD Retests "Breakout" Point As Harami Awaits Validation
- USD/CAD Technical Strategy: Longs Preferred
- Harami To Warn of Weakness If Confirmed
- Breakout Above 1.1040 Opens Run Towards 1.1270
USD/CAD is once again at a crossroads as the pair retests its initial “breakout” point with a Harami pattern in its wake. A daily close below the 1.1040/50 floor would confirm the key reversal pattern and warn of a pullback to 1.0980. Yet, within the context of an emerging uptrend on the daily, longs remain preferred with a target offered by the 2014 high near 1.1270.
USD/CAD: Harami Awaiting Confirmation Near Key Level
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a divergent picture to the daily. A bullish Harami formation and respect of 1.1030/40 hints at a continued recovery for USD/CAD. Selling pressure is likely to be renewed on a test of the nearby 1.1095/1.1100 ceiling.
USD/CAD: Bullish Signal Hints At A Retest Of Recent Highs
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.