USD/CAD Struggles To Ignite Thrusters Near Key Support Zone
- Strategy: Long (1.1280), Target: 1.1460, Stop 1.1270 (Daily Close)
- Clings To Key Support With Reversal Formations Absent
- H4 Chart Leaves Clearer Candlestick Cues Desired
USD/CAD is teasing traders near key support at 1.1280/5 as recent reversal signals fail to offer the pair lift-off. Yet the presence of a core uptrend (albeit an extremely choppy one) remains. This suggests a further retreat is questionable and may warrant a ‘buy the dip’ approach. Traders should be mindful of the pair’s tendency towards violent intraday whipsaws meaning caution is required when looking to adopt fresh positioning.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart appears lacking of key reversal candlestick patterns. This leaves a more constructive setup desired to offer a clearer technical bias.
USD/CAD: Candlestick Reversal Patterns Lacking 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: @DaviddeFe
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.