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USD/CAD Dojis Denote Indecision Following Retreat Below 1.1270

USD/CAD Dojis Denote Indecision Following Retreat Below 1.1270

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 traders appear indecisive on the pair as denoted by a Long-Legged Doji candlestick near 1.1270. This does little to confirm the Dark Cloud Cover pattern that emerged after a ‘false breakout’. A deeper correction is likely to find buying interest renewed at 1.1100 floor.

USD/CAD: Retreat Indicates ‘False Breakout’

USD/CAD Dojis Denote Indecision Following Retreat Below 1.1270

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

The four hour chart tells a similar narrative to the daily. A procession of Dojis highlights the hesitation from traders to swing the CAD in one direction. This leaves a more constructive setup desired to offer a clearer directional bias.

USD/CAD: Dojis Denote Indecision In Intraday Trade

USD/CAD Dojis Denote Indecision Following Retreat Below 1.1270

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

By David de Ferranti, Currency Analyst, DailyFX

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