Forex Strategy - USD/CAD To Offer Range Setup Near 1.1160
- USD/CAD Technical Strategy: Range trading preferred
- Range on the daily remains in force (1.0900 – 1.1200)
- Dojis on four hour suggest intraday gains may be limited
USD/CAD continues to consolidate between 1.0900 and 1.1200 (as demonstrated on the daily). While a Bullish Engulfing pattern suggested some strength may lie ahead, gains may be limited given the range-top looming nearby.
USD/CAD: Consolidation Endures
Daily Chart - Created Using FXCM Marketscope 2.0
Digging deeper, the four hour chart hints at indecision amongst traders evidenced by the formation of several Doji candles straddling the 1.1100 handle.
Range trading strategies remain preferred here with a move to 1.1160 to open up new short opportunities, while a test 1.1050 may present another shot at getting long.
USD/CAD: Doji Candles Suggest Fading Upside Momentum
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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