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USD/CAD At A Crossroads As A Reversal Signal Awaits Confirmation

USD/CAD At A Crossroads As A Reversal Signal Awaits Confirmation

David de Ferranti, Currency Analyst

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Dark Cloud Cover Pattern Left Awaiting Validation
  • Close Below 1.1100 Would Warn Of A Deeper Setback

USD/CAD’s abrupt turn has generated a Dark Cloud Cover pattern which may offer an ominous warning of a continued correction. Critically, the key reversal formation awaits a close of the current candle to be validated. Further, a finish for the day under the 1.1100 barrier would open a further pullback to buying interest at 1.1040.

USD/CAD: Turnaround Leaves A Dark Cloud Cover Pattern In Its Wake

USD/CAD At A Crossroads As A Reversal Signal Awaits Confirmation

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

A Doji on the four hour chart offered an early indication that the bulls were losing steam in intraday trade. The ensuing pullback has failed to leave a reversal signal in its dust, which casts some doubts on a recovery for the pair.

USD/CAD: Doji Suggested Reluctance By The Bulls Near 1.1215

USD/CAD At A Crossroads As A Reversal Signal Awaits Confirmation

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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