USD/CAD Recovery In Doubt Following Drop Below 1.1000
- USD/CAD Technical Strategy: Sidelines Preferred
- Several Dojis signaled hesitation from the bulls above 1.1000
- Absence of bullish signal casts doubt over potential recovery
USD/CAD has finally broken below key support at 1.1000 following a drawn-out struggle between the bulls and bears denoted by several Dojis on the daily. At this stage it may be too soon to call for a recovery for the pair, given a bullish reversal signal is still absent.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; there are few signs of a potential recovery for USD/CAD, given bullish reversal candlestick patterns are seemingly absent.
USD/CAD: Signs of A Bullish Reversal Missing
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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