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USD/CAD Eyes 1.1270 With Absence Of Bearish Candles In Its Wake

USD/CAD Eyes 1.1270 With Absence Of Bearish Candles In Its Wake

David de Ferranti, Currency Analyst

Talking Points

  • USD/CAD Technical Strategy: Longs Preferred
  • Shooting Star Candlestick Near 1.1100 Barrier Disdained
  • Sustained Advance Questionable Amid Choppy Price Action

USD/CAD has managed to climb over the 1.1100 hurdle after traders disdained a bearish candlestick formation on the daily. This leaves a lack of reversal patterns and may open the prospect of a push towards the 1.1270 highs. Yet some skepticism over the potential for a sustained ascent is warranted given the pair’s frustratingly choppy price action over recent weeks.

USD/CAD: Break Of 1.1100 May Open Next Leg Higher To 1.1270

USD/CAD Eyes 1.1270 With Absence Of Bearish Candles In Its Wake

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart paints an encouraging picture for further gains. A pair of Dojis indicated reluctance from the bears to drag the pair back below the 1.1100 barrier. Coupled with the context afforded by the daily this suggests some scope for an advance over the session ahead.

USD/CAD: Dojis Denote Hesitation From The Bears To Drag The Pair Lower

USD/CAD Eyes 1.1270 With Absence Of Bearish Candles In Its Wake

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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