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Forex Strategy: USD/CAD Short Pending On Shooting Star Confirmation

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Talking Points

A Shooting Star candlestick formation on the daily is hinting at the recent bounce for USD/CAD has run its course. The pair failed to break above the key resistance level at 1.1200 which capped the rally back in January.

Confirmation from a pursuant down-day is required before the reversal signal is validated and a technical bearish bias is offered for the Loonie. A target for short positions may be offered by noteworthy support at 1.0900 which also marks the 50% Fib Retracement level from the January advance.

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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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