Talking Points
- USD/CAD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Emerges After Dramatic Pullback
- Doji Highlights Reluctance From Traders On H4 Chart
USD/CAD traders appear indecisive on the pair as denoted by a Long-Legged Doji candlestick near 1.1270. This does little to confirm the Dark Cloud Cover pattern that emerged after a ‘false breakout’. A deeper correction is likely to find buying interest renewed at 1.1100 floor.
USD/CAD: Retreat Indicates ‘False Breakout’
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart tells a similar narrative to the daily. A procession of Dojis highlights the hesitation from traders to swing the CAD in one direction. This leaves a more constructive setup desired to offer a clearer directional bias.
USD/CAD: Dojis Denote Indecision In Intraday Trade
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.