USD/CAD Retests Critical Barrier After Bearish Pattern Falls Flat
- USD/CAD Technical Strategy: Sidelines Preferred
- Downside Risks Remain While Sub 1.1220
- Bearish Reversal Signals Lacking In Intraday Trade
USD/CAD’s retest of the 1.1220 barrier leaves the pair at a critical juncture. A climb above the nearby ceiling would negate a Bearish Engulfing pattern and turn the risks higher for a potential revisit of 1.1380. Yet while below the key hurdle there remains the possibility of a deeper pullback to the 1.1100 floor.
USD/CAD: Whipsaws 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 with a void of bearish signals suggesting the potential for intraday gains. However, given the context on the daily the extent of an advance may be limited by the nearby 1.1220/5 barrier.
USD/CAD: Absence Of Bearish Signals Opens Prospect Of Intraday Gains
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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