USD/CAD Hammer Keeps Recovery Hopes Alive Above 1.0850

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Hammer May Find Limited Follow-Through
  • H4 Chart Hinted At An Intraday Rebound

USD/CAD has been offered a source of hope from a Hammer formation on the daily. Yet traders should be mindful of the pair’s tendency to whipsaw in intraday trade and the lack of follow-through witnessed for recent signals.

USD/CAD: Bullish Pattern May Struggle To See Follow-Through

USD/CAD Hammer Keeps Recovery Hopes Alive Above 1.0850

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

The four hour chart offered an early indication of a potential intraday recovery for USD/CAD. A Harami pattern suggests the potential for a retest of the recent highs near 1.0943. However, again some caution in playing a bounce is warranted given the potential for significant intraday swings as has been witnessed in recent trade.

USD/CAD: Harami Hints At An Intraday Recovery To Recent Highs

USD/CAD Hammer Keeps Recovery Hopes Alive Above 1.0850

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

By David de Ferranti, Currency Analyst, DailyFX

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