Talking Points
- USD/CAD Technical Strategy: Sidelines Preferred
- Shooting Star To Warn Of A Correction If Confirmed
- Awaiting Break Of Narrow Range For Fresh Positioning
USD/CAD remains at a crossroads as a Shooting Star formation warns of weakness after failing to close above the 1.1000 barrier. Critically the reversal formation awaits validation from an ensuing down day to confirm the potential for a correction. A pullback would likely be met by buying interest at the 1.0854 floor. Traders should be mindful of the pair’s tendency to whipsaw in recent trade, which warrants a cautious approach to trading an upside breakout.
USD/CAD: Shooting Star Emerges After Failing To Close Above 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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