Talking Points
- USD/CAD Technical Strategy: Longs Preferred
- Absence of Reversal Signals Opens Further Gains
- Sights Turn To 2014 High Following Breach Of 1.11
USD/CAD has continued its journey higher with a lack of reversal candlesticks keeping the focus on the 2014 high near 1.1270. A slide back under the 1.1100 barrier would be required to warn of a correction for the pair.
USD/CAD: Break Of 1.1100 May Open Next Leg Higher To 1.1270
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a Bearish Engulfing pattern in the making near 1.1175. However, critically the formation awaits the close of the current candle and a successive down period to be validated. Intraday buying support appears evident at the 1.1145 mark.
USD/CAD: Bearish Engulfing Formation Takes Shape
4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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