Talking Points
- USD/CAD Technical Strategy: Sidelines Preferred
- Hanging Man May See Lackluster Response
- Morning Star Hinted At An Intraday Recovery
USD/CAD continues to swing wildly around the 1.1270 mark with an intraday recovery producing a Hanging Man formation on the daily. Yet recent key reversal patterns have found little follow-through, casting some doubt on a strong reaction to the bearish signal. Strong buying interest is likely to be renewed at the 1.1100 floor.
USD/CAD: Swings Around 1.1270 Produce A Hanging Man Formation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Morning Star candlestick formation on the four hour chart offered an early indication that the bulls were looking to return to the pair. However, some more recent short-body candlesticks suggest indecision near the 1.1265/70 mark. This leaves a more constructive setup desired to offer a clearer directional bias.
USD/CAD: Morning Star Hinted At Intraday Recovery
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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