Tuesday, September 30, 2014

USD/CAD Setback May Prove Short-Lived With Bearish Candles Missing




Talking Points



  • USD/CAD Technical Strategy: Longs Preferred


  • Absence of Reversal Signals May Open Further Gains


  • Sights Turn To 2014 High Following Breach Of 1.11


USD/CAD’s ascent has encountered some turbulence which may prove transitory with a void of bearish reversal signals in its wake. This keeps the 2014 high near 1.1270 in focus. A slide back under the 1.1100 barrier would be required to warn of a correction for the pair.



USD/CAD: Loses Steam After Leaping Over 1.1100 Hurdle


USD/CAD Setback May Prove Short-Lived With Bearish Candles Missing


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



The four hour chart reveals some ‘messy’ intraday price action within the 1.1135 and 1.1175 trading band. While a Hanging Man had warned of a potential correction, it failed to find significant follow-through. This leaves a break of the recent range desired in order to offer a clearer directional bias.



USD/CAD: Awaiting Break From Intraday Congestion


USD/CAD Setback May Prove Short-Lived With Bearish Candles Missing


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



By David de Ferranti, Currency Analyst, DailyFX



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USD/CAD Setback May Prove Short-Lived With Bearish Candles Missing

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