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USD/CAD Parity Intra Day Reversal Pattern 12th September

US Dollar/Canadian Dollar Intra Day Analysis

There is a bearish engulfing/long shadow reversal signal on the 4 hour chart today which could be signalling a near term top for USD/CAD.  Parity is a key level for the USD/CAD currency pair and has seen many reversals over the past few years.   A technical analysis breakdown of this setup follows below:

USD/CAD 4 Hour Chart 1

intradayusdcad20110912 1617 thumb USD/CAD Parity Intra Day Reversal Pattern 12th September

  • Our weekly analysis for USD/CAD stated that “any reaction, or price action reversal signal, at parity should be monitored closely”.   Our longer term bias is still to the upside but intra-day price action is hinting towards a possible near term drop for USD/CAD.
  • The retrace confluence level around 1.9880 is an interesting target area as this may see renewed buying if hit.  This comprises of a 50% retrace of 0.9725 > 1.002696 and 23.6% Fibonacci retrace of 0.94063 > 1.0026.
  • A daily close below 0.9950 would add weight to the near term bearish scenario.
  • The dollar index has broken above the 76.30 area resistance highs and any retest of this area, with subsequent reaction, could also give a heads up as to a potential resumption of the USD/CAD uptrend.
  • USD/CAD has been caught in a trading range between 0.9700 and 1.000 since early August.  Any sustained reversal from the resistance highs could potentially see a continuation of this medium term consolidating price action.
  • Two 4 hours charts are attached highlighting the delta between the associated feeds. 

USD CAD 4 Hour Chart 2 (Different Closing Time)

usdcadparityfeed220110912 1714 thumb USD/CAD Parity Intra Day Reversal Pattern 12th September

USD CAD Weekly Line Chart Shows Multiple Reversals

canadianparitypivot20110910 1844 thumb1 USD/CAD Parity Intra Day Reversal Pattern 12th September

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One Response to USD/CAD Parity Intra Day Reversal Pattern 12th September

  1. forex-fx-4x says:

    Update 13/9/11. Price has now moved around 100 pips lower since the post was uploaded yesterday.

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