USD/CAD Lacking Downside Momentum Following Doji Ensemble

Talking Points

  • USD/CAD Technical Strategy: Shorts Preferred
  • Push Past The 1.0900 Barrier Opens The 1.0810 Mark
  • Ensemble of Dojis Suggest Caution From Bears

USD/CAD is struggling to reclaim the 1.0900 handle as a pair of Dojis suggest a lack of conviction from traders. While capped below the critical hurdle the pair may face further weakness. This casts the immediate risk lower for a retest of the May lows at 1.0810. A daily close back above the 1.0900 barrier would be required to negate a bearish technical bias.

USD/CAD: Traders Deliberate As Dojis Form On The Daily

USD/CAD Lacking Downside Momentum Following Doji Ensemble

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

Scrutinizing the four hour chart reveals another ensemble of Dojis near intraday support at 1.0858. These have arisen after a Bullish Engulfing formation was negated after failing to receive confirmation from a successive up period. With key reversal patterns now lacking the prospect of a sustained recovery for USD/CAD is questionable.

USD/CAD: Struggling To Reclaim Lost Ground With Bullish Signals Lacking

USD/CAD Lacking Downside Momentum Following Doji Ensemble

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.

This entry was posted in Binary Options Signals Related News and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *