USD/CAD Cautious Advance On 1.1270 Continues Following Bullish Signal
- USD/CAD Technical Strategy: Sidelines Preferred
- Bullish Engulfing Pattern Emerges At Critical Floor
- Short Body Candles Highlight Reluctance From Traders
USD/CAD continues its cautious journey towards the 1.1270 target after being launched by a Bullish Engulfing formation near 1.1100. A string of ensuing short body sessions hardly inspires confidence in the momentum behind the recent move. Yet an absence of bearish signals suggests a revisit of the recent peaks remains possible. In the alternative scenario, a daily close below the 1.1100 barrier would be required to warn of a deeper setback to buying interest at the 1.1040 mark.
USD/CAD: Sights Remain On Recent Peaks
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a less encouraging picture than the daily. A medley of short body candles suggests a lack of momentum following the rebound from 1.1100. Yet with bearish reversal patterns absent a correction over the session ahead is questionable.
USD/CAD: Short Body Candles Suggest Fading Upside Momentum
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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