Forex Strategy: USD/CAD Coiled Like A Spring Near 1.1000
- USD/CAD Technical Strategy: longs preferred
- Psychologically-significant 1.1000 handle acting to support prices
- Doji on daily suggests hesitation amongst the bears
Recent price action has left USD/CAD traders in suspense as the pair continues to hug critical 1.1000/20 mark. Several Doji formations on the daily signal that the bears are hesitant to push prices lower, while the absence of a bullish reversal pattern indicates the bulls are still in their pens.
However, the drawn-out struggle between both sides may be set to end in the coming hours as the critical monthly US NFP report is likely to spark some volatility for the pair. Details available on the economic calendar here.
USD/CAD: Coiled Like A Spring Near 1.1000/20
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart, several bullish reversal patterns have failed to receive much follow-through. New long positions may be better-served if a correction higher starts to gain traction.
USD/CAD: 1.1000 Offers Support In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.