USD/CAD Rebounds After Doji Signaled Bears Were Lacking Conviction
- USD/CAD Technical Strategy: Sidelines Preferred
- Doji Candlestick Indicated Reluctance From Traders
- H4 Chart Lacking Clear Directional Signals
USD/CAD is edging cautiously higher after a Doji suggested the bears were lacking conviction near the 1.1220 floor. The daily close above the barrier is a supportive sign, yet the violent intraday swings suggests caution is needed when looking to adopt fresh positioning.
USD/CAD: Doji Suggested Indecision At 1.1220 Floor
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The extent of USD/CAD’s wild intraday whipsaws is evident on the four hour chart. This choppy price action detracts from the forecasting potential of candlesticks and leaves a clear directional bias lacking.
USD/CAD: Violent Intraday Swings Leaves Clear Bias Lacking
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.