Talking Points
- USD/CAD Technical Strategy: Sidelines Preferred
- Harami Confirmation Warns Of Short-Term Weakness
- “False Breakout” Casts Risks Lower To 1.0854
USD/CAD is once again teasing traders at the 1.0980/1.1000 barrier with a Harami pattern in its wake. The key reversal pattern and daily close below the initial ‘breakout’ point warns of further short-term weakness for the pair. Yet within the context of a longer-term uptrend a pullback to the 1.0854 floor would be seen as a buying opportunity at this stage.
USD/CAD: Harami Delivers Drop Below “Breakout” Point
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An Evening Star formation on the four hour timeframe may warn of intraday correction for the pair. If confirmed by a successive down period a pullback may ensue to nearby buying support at the 1.0936 floor.
USD/CAD: Evening Star Awaiting Confirmation Near Intraday Resistance
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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