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USD/CAD Gaze Turns Back To 2014 High After Hammer Emerges

USD/CAD Gaze Turns Back To 2014 High After Hammer Emerges

David de Ferranti, Currency Analyst

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Hammer Candlestick Left Awaiting Validation
  • Close Below 1.1100 Would Warn Of A Deeper Setback

USD/CAD’s whipsaw has left a collection of key reversal signals in its wake. The most recent Hammer formation indicates the bulls are not yet prepared to relinquish their grip on prices. This may negate the earlier Dark Cloud Cover pattern and in turn herald a push to the pair’s 2014 high at 1.1270. In the alternate scenario a close under the 1.1100 barrier would open a further pullback to buying interest at 1.1040.

USD/CAD: Whipsaw Leaves A Hammer In Its Wake

USD/CAD Gaze Turns Back To 2014 High After Hammer Emerges

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

A Morning Star pattern on the four hour chart offered an early indication that the bulls were preparing to charge in intraday trade. While their run appears to have slowed near 1.1175 a lack of reversal signals casts doubt on a potential pullback.

USD/CAD: Morning Star Signaled Rise Of The Bulls

USD/CAD Gaze Turns Back To 2014 High After Hammer Emerges

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

By David de Ferranti, Currency Analyst, DailyFX

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