Thursday, July 31, 2014

USD/CAD Continues Upward Journey With Bullish Pattern In Tow




Talking Points



  • USD/CAD Technical Strategy: Longs Preferred


  • Absence of key reversal patterns suggests gains to continue


  • Break Of 1.0810 Paves The Way For Run On 1.0960


USD/CAD continues its journey to the upside target of 1.0960 following a Morning Star formation on the daily. With bearish formations still lacking the daily a break above the nearby resistance level could yield a push to the April highs near 1.1040.



USD/CAD: Upside Break Opens 1.0960 With Bearish Patterns Absent


USD/CAD Continues Upward Journey With Bullish Pattern In Tow


Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here



A similar narrative to the daily is evident on the four hour timeframe after a Hanging Man formation failed to find confirmation from an ensuing down-period. This casts doubt on a potential correction for the pair over the session ahead. Further gains may be in store on a push above intraday resistance at 1.0870.



USD/CAD: Eyeing Further Gains As Hanging Man Fails To Find Confirmation


USD/CAD Continues Upward Journey With Bullish Pattern In Tow


4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here



By David de Ferranti, Market Analyst, DailyFX



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USD/CAD Continues Upward Journey With Bullish Pattern In Tow

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