Talking Points
- USD/CAD Technical Strategy: Sidelines Preferred
- Pullback Sees A Bearish Engulfing Pattern Emerge
- H4 Chart Reveals Bullish Signal Lacking Confirmation
The USD/CAD bulls appear to have lost their grip on the pair after struggling to hang onto the 1.1200 mark. The recent pullback has left a Bearish Engulfing formation in its path, which awaits confirmation from a successive down-day. Validation would warn of a deeper setback towards the psychologically-significant 1.1100 handle.
USD/CAD: Bearish Engulfing Pattern Warns Of A Deeper Setback
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals some intraday buying interest at the 1.1160 mark, which has prompted the emergence of a Harami formation. However, the bullish reversal signal lacks confirmation at this stage – casting doubt on a potential recovery over the session ahead.
USD/CAD: Recovery Questionable As Harami Lacks Confirmation
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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