USD/CAD Doji Suggests Bulls Reluctant To Push Back Above 1.1000
- USD/CAD Technical Strategy: Shorts Preferred
- Doji suggests reluctance from bulls to push prices back above 1.1000
- Bearish Engulfing pattern on four hour chart points to further declines
USD/CAD remains capped below former support-turned resistance at 1.1000 with a Doji on the daily showing a reluctance from the bulls to reclaim the key level. The failure to push back above resistance suggests a bearish bias with a potential target offered by the recent range-bottom at 1.0860.
Traders should be mindful of the potential for a surprise US Non-Farm Payrolls reading in the coming hours to spark significant volatility for US Dollar based pairs. The release of the figures will be covered live in DailyFX Plus.
Daily Chart - Created Using FXCM Marketscope 2.0
The Inverted Hammer on the four hour chart helped foreshadow the bounce back to 1.1000 in intraday trade. However the strong selling pressure near the critical level of resistance has prompted the emergence of a Bearish Engulfing pattern which now puts 1.0940 in focus.
USD/CAD: Bearish Engulfing Pattern Suggests Significant Selling Pressure Near 1.1000
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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