Talking Points
- Strategy: Long, Stop: 1.1380, Target: 1.1720
- Shooting Star Fails To Find Confirmation
- Reversal Signals Lacking In Intraday Trade
USD/CAD has rebounded nicely from its initial ‘breakout point’, which has left a Shooting Star formation lacking confirmation. This casts the spotlight is on the next definitive level near the July 2009 high near 1.1720. A close back under the 1.1380 barrier would be required to negate a bullish bias for the pair and suggest a top.
USD/CAD: Shooting Star Fails To Find Confirmation
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a lack of key reversal signals, which makes a pullback over the session ahead questionable. Yet trader should tread cautiously ahead of the recent 1.1464 peak which may prompt some renewed selling interest in the pair.
USD/CAD: Lacking Reversal Candlesticks 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: @DaviddeFe
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.