USD/CAD Dark Cloud Cover Awaits Confirmation To Warn Of A Pullback
- Strategy: Flat
- Dark Cloud Cover Awaiting Confirmation On The Daily
- H4 Chart Reveals Reluctance From Traders Near 1.1600
USD/CAD’s recent ascent may be at risk as a Dark Cloud Cover pattern awaits confirmation. A successive down period is required to validate the signal and warn of a potential pullback. Buying interest would likely be renewed at former resistance-turned-support at 1.1460.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals reluctance from traders as demonstrated by a string of Doji formations. This does little to instill confidence in the prospect of a pullback (as signaled by the daily). A slip beneath buying interest at the psychologically-significant 1.1600 handle would be required to cast the immediate risk lower over the session ahead.
USD/CAD: Dojis Indicate Indecision From Traders Near 1.1600
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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