USD/CAD Eyes Further Gains Amid Absence of Bearish Candlesticks
- USD/CAD Technical Strategy: Longs Preferred
- Bullish Engulfing Pattern Offered Positive Signal At 1.1100
- Doji Highlights Reluctance From Traders On H4 Chart
USD/CADhas rocketed past the 1.1270 target offered in recent reports after being launched by a Bullish Engulfing formation. An absence of a bearish reversal patterns suggests the journey higher may continue. The next definitive level to work with is some distance away at the July 2009 high near 1.1720. A daily close below the 1.1270 floor would signal a ‘false breakout’ and warn of a potential correction for the pair.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Doji on the four hour chart offers a less encouraging picture than the daily. The candlestick formation suggests hesitation from the bulls to lead the pair higher. Yet with bearish reversal patterns absent a correction over the session ahead is questionable.
USD/CAD: Doji Denotes Reluctance From The Bulls
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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