USD/CAD Rebound Diminishes Bearish Pattern Significance
- Strategy: Flat, Long On Close > 1.1460
- Bearish Pattern Left Lacking Validation
- Harami On The Radar In Intraday Trade
USD/CAD’s bounce back has eroded the significance of a Bearish Engulfing pattern on the daily. As noted in recent reports the pair has a tendency towards violent impulsive swings. This suggested any dip could prove transitory. Clearance of former support-turned-resistance at 1.1380 may open a retest of the recent peak at 1.1460.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A parade of Dojis on the four chart signified reluctance from the bears to lead USD/CAD lower. With a Harami now in its wake, the intraday timeframe should be closely monitored for confirmation from a successive down-period. Yet this may prove challenging given some intraday buying interest at the 1.1370 floor.
USD/CAD: Harami On The Radar In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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