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Talking Points
- USD/CAD Technical Strategy: Sidelines preferred
- Longer-term range on the daily remains in force (1.0900 – 1.1200)
- Bearish Engulfing formation hints at intraday declines
A Bullish Engulfing formation on the daily chart for USD/CAD is hinting some strength for the pair following a failure to hold below the psychologically-significant 1.1000 handle. However, follow-through has been limited at this stage which suggests the bulls may struggle to push prices back to the 2014 highs at 1.1200.
However, the four hour chart presents a conflicting message. A Bearish Engulfing pattern is hinting at a some declines in the session ahead with support likely to emerge at 1.1053 and 1.1030 (the 50% and 61.8% Fib Levels respectively)
Confirm your chart-based trade setups with the Technical Analyzer.
4 Hour Chart – Created Using FXCM Marketscope 2.0
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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