USD/CAD Bullish Signal Awaits Confirmation Near 1.1000 Hurdle
- USD/CAD Technical Strategy: Sidelines Preferred
- Hammer Candlestick Emerges Near The 1.1000 Barrier
- Recovery Questionable Amid Choppy Price Action
USD/CAD continues to keep traders in suspense near the 1.1000 hurdle with a Hammer formation awaiting confirmation. An ensuing up-day and daily close above the nearby barrier may open a further recovery for the pair. Yet some skepticism over the potential for a sustained ascent is warranted given its frustratingly choppy price action over recent weeks.
USD/CAD: Hammer Awaits Confirmation Near 1.1000 Hurdle
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart tells a similar narrative to the daily. Volatile price action has left a trail of candlestick patterns that have received little attention over the past week. This suggests some caution is needed when interpreting the Morning Star formation that is taking shape in intraday trade.
USD/CAD: Morning Star Takes Shape, Yet Follow-Through May Prove Difficult
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.