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.
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.