USD/CAD Retests Critical Barrier, Bearish Pattern Falls Flat
Dailyfx | Oct 31, 2014 05:59AM ET
Talking Points
- /CAD Technical Strategy: Sidelines Preferred
- Downside Risks Remain While Sub 1.1220
- Bearish Reversal Signals Lacking In Intraday Trade
USD/CAD’s retest of the 1.1220 barrier leaves the pair at a critical juncture. A climb above the nearby ceiling would negate a Bearish Engulfing pattern and turn the risks higher for a potential revisit of 1.1380. Yet while below the key hurdle there remains the possibility of a deeper pullback to the 1.1100 floor.
The four hour chart appears more constructive than the daily with a void of bearish signals suggesting the potential for intraday gains. However, given the context on the daily the extent of an advance may be limited by the nearby 1.1220/5 barrier.
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