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 has resumed its ascent after encountering some intraday turbulence near 1.1200. An absence of reversal candlesticks may keep the pair on course for a revisit of the 1.1270 destination. Yet, short body candles do little to inspire confidence in the momentum behind the recent move. A slide back under the 1.1100 barrier would be required to warn of a correction for the pair.
USD/CAD: 1.1270 Ceiling In Focus
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals some hesitation from traders as denoted by a Doji near 1.1215. However, the candlestick is not considered a key reversal pattern – casting doubt on the potential for a correction over the session ahead.
USD/CAD: Doji Suggests Reluctance By The Bulls Near Session Highs
4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.