USD/CAD Lacking Downside Momentum Following Doji Ensemble
- USD/CAD Technical Strategy: Shorts Preferred
- Push Past The 1.0900 Barrier Opens The 1.0810 Mark
- Ensemble of Dojis Suggest Caution From Bears
USD/CAD is struggling to reclaim the 1.0900 handle as a pair of Dojis suggest a lack of conviction from traders. While capped below the critical hurdle the pair may face further weakness. This casts the immediate risk lower for a retest of the May lows at 1.0810. A daily close back above the 1.0900 barrier would be required to negate a bearish technical bias.
USD/CAD: Traders Deliberate As Dojis Form On The Daily
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Scrutinizing the four hour chart reveals another ensemble of Dojis near intraday support at 1.0858. These have arisen after a Bullish Engulfing formation was negated after failing to receive confirmation from a successive up period. With key reversal patterns now lacking the prospect of a sustained recovery for USD/CAD is questionable.
USD/CAD: Struggling To Reclaim Lost Ground With Bullish Signals Lacking
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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