USD/CAD Violent Swings Leave Bearish Pattern Lacking Confirmation
- USD/CAD Technical Strategy: Sidelines Preferred
- Downside Risks Remain While Sub 1.1220
- Bullish Pattern Signaled Intraday Turn
USD/CAD continues to whipsaw wildly in intraday trade which has done little to confirm a Bearish Engulfing pattern on the daily. Yet downside risks may remain for the pair while sub the 1.1220 ceiling. Downside risks are centered on the psychologically-significant 1.1100 handle.
USD/CAD: Whipsaws Do Little To Confirm Bearish Pattern
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart appears more constructive than the daily. A Hammer formation and void of bearish signals suggests the potential for some intraday gains. However, given the context on the daily the extent of an advance may be limited.
USD/CAD: Hammer Signaled Intraday Turning Point
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.