USD/CAD Whipsaw Sees Shooting Star Formation Emerge

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Shooting Star To Warn Of A Correction If Confirmed
  • Awaiting Break Of Narrow Range For Fresh Positioning

USD/CAD remains at a crossroads as a Shooting Star formation warns of weakness after failing to close above the 1.1000 barrier. Critically the reversal formation awaits validation from an ensuing down day to confirm the potential for a correction. A pullback would likely be met by buying interest at the 1.0854 floor. Traders should be mindful of the pair’s tendency to whipsaw in recent trade, which warrants a cautious approach to trading an upside breakout.

USD/CAD: Shooting Star Emerges After Failing To Close Above 1.1000

USD/CAD Whipsaw Sees Shooting Star Formation Emerge

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

The four hour chart paints a mixed picture as reversal signals emerge amid choppy trading conditions. The latest such pattern (a Piercing Line formation) may struggle to find follow-through with intraday resistance looming nearby at 1.1000.

USD/CAD: Choppy Trading Leaves Mixed Signals

USD/CAD Whipsaw Sees Shooting Star Formation Emerge

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

By David de Ferranti, Currency Analyst, DailyFX

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