Talking Points
- USD/CAD Technical Strategy: Pending Long
- Climb Over 1.0900 Opens Recent Highs At 1.0980
- Ensemble of Dojis Suggested Caution From Bears
USD/CAD has vaulted over the 1.0900 hurdle after a pair of Dojis suggested the bears were lacking conviction. This sets the pair up for a retest of its recent highs near 1.0980. Given the proximity of the nearby barrier, new longs may be better served on an upside break.
USD/CAD: Dojis Signaled Lack of Conviction By The Bears
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Scrutinizing the four hour chart reveals another ensemble of Dojis near intraday support at 1.0858. While not considered a key reversal pattern, they offered an early indication of hesitation from traders to lead the pair lower. An absence of bearish reversal signals in intraday trade casts doubt over a correction at this stage.
USD/CAD: Correction Questionable With Key Reversal Signals Lacking
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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