USD/CAD Traders In Suspense As Dojis Build Near 1.1000
- USD/CAD Technical Strategy: Longs Preferred
- Bullish Engulfing pattern results in break of 1.1000 handle
- Bearish reversal signal on the daily remains absent
Several consecutive short trading sessions for USD/CAD above the critical 1.1000 handle are keeping traders in suspense. Doji candlesticks on the daily signal some hesitation from the bulls to push prices higher, yet the absence of a bearish reversal pattern suggests a correction is unlikely at this stage.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; a couple of Dojis near 1.1045 are further evidence that bulls are lacking the conviction necessary to push USD/CAD higher. However, similarly to the daily, the signs of indecision are not substantial enough to indicate a meaningful correction. Buying support is likely to continue to keep the Loonie above the 1.1000 in the session ahead.
USD/CAD: Buyers Likely To Emerge at 1.1000
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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