Forex Strategy: USD/CAD Teases Traders Near Critical 1.1000 Level
- USD/CAD Technical Strategy: Sidelines Preferred
- Psychologically-significant 1.1000 remains on the radar
- Recovery may be limited with bullish signal missing
After a suspenseful ride with several hints at a bounce, USD/CAD has finally broken below key support at 1.1000. However shorts may be precluded at this stage given that prices still remain within a familiar range between 1.0900 and 1.1300, which leaves noteworthy buying support close by. At the same time, with a bullish reversal signal missing there is doubt cast over a sustained recovery for the pair.
USD/CAD: Back At Critical 1.1000 Handle
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart, the importance of the 1.1000 handle is made more evident. However, even as prices tease at an upside breakout, a recovery may prove limited given the lackluster reaction by traders to several prior bullish signals.
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.