Talking Points
- USD/CAD Technical Strategy: Sidelines Preferred
- Shooting Star Offers Bearish Signal Near Range-Top
- Awaiting Break Of Narrow Range For Fresh Positioning
USD/CAD is once again teasing traders near the 1.1000 barrier. With a Shooting Star in its wake the risk of a correction remains. A pullback would likely be met by buying interest at the 1.0854 floor. Whereas a daily close above the 1.1000 ceiling would set the stage for a run on 1.1040. As noted in recent reports; traders should be mindful of the pair’s tendency to whipsaw, which warrants a cautious approach to trading an upside breakout.
USD/CAD: Remains At A Critical Juncture Near 1.1000
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a mixed picture as reversal signals emerge amid choppy trading conditions. The latest such pattern (a Piercing Line formation) may struggle to find follow-through with intraday resistance looming nearby at 1.1000.
USD/CAD: Choppy Trading Leaves Mixed Signals
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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