USD/CAD Eyes Recent Peaks With Bullish Engulfing Pattern In Its Wake
- USD/CAD Technical Strategy: Sidelines Preferred
- Bullish Engulfing Pattern Emerges At Critical Floor
- Confirmation Of Reversal Signal To Open .1.1270
USD/CAD has extended its recent advance on the back of a Bullish Engulfing candlestick formation. A Doji and recent “messy” price action does little to inspire confidence in the signal. Yet a lack of bearish patterns suggests an ascent on the recent peaks remains possible. 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: Sights Remain On Recent Peaks
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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