USD/CAD Dark Cloud Cover Awaits Confirmation To Warn Of A Pullback
Dark Cloud Cover Awaiting Confirmation On The Daily
H4 Chart Reveals Reluctance From Traders Near 1.1600
USD/CAD’s recent ascent may be at risk as a Dark Cloud Cover pattern awaits confirmation. A successive down period is required to validate the signal and warn of a potential pullback. Buying interest would likely be renewed at former resistance-turned-support at 1.1460.
USD/CAD: Dark Cloud Cover Awaits Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals reluctance from traders as demonstrated by a string of Doji formations. This does little to instill confidence in the prospect of a pullback (as signaled by the daily). A slip beneath buying interest at the psychologically-significant 1.1600 handle would be required to cast the immediate risk lower over the session ahead.
USD/CAD: Dojis Indicate Indecision From Traders Near 1.1600
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.