Talking Points
- USD/CAD Technical Strategy: Sidelines Preferred
- Doji Indicates Indecision From Traders Near 1.1270
- Bullish Engulfing Formation Offers Positive Intraday Signal
USD/CAD’s swings around 1.1270 have persisted with a recent Doji formation suggesting indecision from traders. Limited follow-through has been witnessed to the parade of recent candlestick patterns. This in turn leaves a more constructive setup desired before adopting fresh positioning.
USD/CAD: Doji Suggests Indecision Nears 1.1270
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offers a more constructive picture than the daily. A Bullish Engulfing pattern near 1.1265 offers a positive sign, yet a pair of ensuing short body candles does little to inspire confidence in further gains. Selling pressure is likely to be renewed at intraday resistance near 1.1370.
USD/CAD: Bullish Engulfing Pattern Emerges In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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