USD/CAD Pullback Produces A Bearish Engulfing Candlestick Formation
- USD/CAD Technical Strategy: Sidelines Preferred
- Bearish Engulfing Candlestick Pattern Awaits Confirmation
- Close Below 1.1100 Needed To Warn Of A Deeper Setback
USD/CAD’s retreat from the 1.1270 target offered in recent reports has left a Bearish Engulfing formation awaiting confirmation. With strong buying interest near 1.1100 and a disdain for prior reversal formations a deeper correction is questionable. This turns the focus back to the pair’s recent highs.
USD/CAD: Bearish Engulfing Formation Awaits Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Piercing Line pattern indicated the return of the bulls in intraday trade. While a pair of short body candles does little to inspire confidence in a sustained advance an absence of reversal signals also casts doubt on a correction.
USD/CAD: Piercing Line Generates Intraday Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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