USD/CAD Bullish Signal May See Limited Response Sub 1.1000
- USD/CAD Technical Strategy: Sidelines Preferred
- Several Dojis signaled hesitation from the bulls above 1.1000
- Inverted Hammer on 4 hour chart may see limited response
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 on the daily.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; there may be a small sign of hope for the USD/CAD bulls, provided by an Inverted Hammer formation. However an intraday recovery is likely to be met by strong selling pressure at the critical 1.1000 handle.
USD/CAD: Sellers Likely Sitting at 1.1000
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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