A retracement into the gains of the previous day’s gains morphed into a Dark Cloud Cover pattern adding more bearish sentiment to the USD/CAD daily chart.

This pattern portends a potential resistance zone and an opportunity for traders to position themselves short with additional bearish confirmation: further downside follow through, a gap down, a long black candlestick or a high volume decline within the next one to three days.

Bearish reversal pattern on the USD/CAD daily chart

(Market News Provided by FXstreet)

By FXOpen