News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
USD/CAD "False Breakout" Produces Dark Cloud Cover Pattern

USD/CAD "False Breakout" Produces Dark Cloud Cover Pattern

David de Ferranti, Currency Analyst

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Dark Cloud Cover Emerges After Dramatic Pullback
  • Doji Highlights Reluctance From Traders On H4 Chart

USD/CAD’s retreat back below the 1.1270 barrier has left a Dark Cloud Cover formation in its trail. While the pullback is indicative of a ‘false breakout’ confirmation of the bearish pattern would be required to warn of a deeper setback for the pair. Buying interest is likely to be renewed at 1.1100 floor.

USD/CAD: Retreat Indicates ‘False Breakout’

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

Similarly, a Dark Cloud Cover pattern on the four hour chart offered an early warning sign that the bears were looking to return to the pair. Yet a more recent Doji candlestick now suggests some indecision near the 1.1265/70 mark. This leaves a more constructive setup desired to offer a clearer directional bias.

USD/CAD: Doji Denotes Indecision In Intraday Trade

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.

DISCLOSURES