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USD/CAD Violent Swings Leave Bearish Pattern Lacking Confirmation

USD/CAD Violent Swings Leave Bearish Pattern Lacking Confirmation

David de Ferranti, Currency Analyst

Talking Points

  • 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

USD/CAD Violent Swings Leave Bearish Pattern Lacking Confirmation

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

USD/CAD Violent Swings Leave Bearish Pattern Lacking Confirmation

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

By David de Ferranti, Currency Analyst, DailyFX

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