USD/CAD Rebound From 1.1100 Produces Bullish Candlestick Pattern
- USD/CAD Technical Strategy: Sidelines Preferred
- Bullish Engulfing Pattern Emerges At Critical Floor
- Confirmation Of Reversal Signal To Open .1.1270
USD/CAD’s bounce off the 1.1100 floor has left a Bullish Engulfing formation in its wake. The key reversal candlestick pattern may herald an advance on the 1.1270 mark if confirmed by a successive up-day. Yet amid volatile and ‘messy’ price action a clean run higher may prove a challenging feat for the pair. In the alternative scenario, a daily close below the 1.1100 barrier would be required to warn of a deeper setback to buying interest at the 1.1040 mark.
USD/CAD: Receives Lift-Off From 1.1100 Barrier
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a less encouraging picture than the daily. A medley of short body candles suggests a lack of momentum following the rebound from 1.1100. Yet with bearish reversal patterns absent a correction over the session ahead is questionable.
USD/CAD: Short Body Candles Suggest Fading Upside Momentum
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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