USD/CAD Eyes Recent Peak As A Reversal Pattern Awaits Confirmation
- Strategy: Flat, Long On Close > 1.1460
- Morning Star Formation Awaiting Confirmation
- H4 Chart Offered An Early Hint At A Bounce
USD/CAD’s rebound has given rise to a Morning Star formation on the daily, which awaits confirmation from a successive up-session. If received it could pave the way for an eventual upside break of the recent peak near 1.1460. Yet traders should be mindful of the pair’s tendency towards violent intraday whipsaws. This suggests caution is required when looking to adopt fresh positioning.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Morning Staroffered an intraday signal that the bulls were looking to return to the pair near the 1.1265 floor. With bearish signals lacking a climb over the 1.1400 hurdle may open an ascent towards the 1.1464 mark.
USD/CAD: Morning Star Offered Intraday Turning Signal
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.