Wednesday, April 30, 2014

USD/CAD Recovery In Doubt Following Drop Below 1.1000




Talking Points



  • USD/CAD Technical Strategy: Sidelines Preferred


  • Several Dojis signaled hesitation from the bulls above 1.1000


  • Absence of bullish signal casts doubt over potential recovery


USD/CAD has finally broken below key support at 1.1000 following a drawn-out struggle between the bulls and bears denoted by several Dojis on the daily. At this stage it may be too soon to call for a recovery for the pair, given a bullish reversal signal is still absent.



USD/CAD: Bears Take Control


USD/CAD Recovery In Doubt Following Drop Below 1.1000


Daily Chart – Created Using FXCM Marketscope 2.0



Drilling down to the four hour chart; there are few signs of a potential recovery for USD/CAD, given bullish reversal candlestick patterns are seemingly absent.



USD/CAD: Signs of A Bullish Reversal Missing


USD/CAD Recovery In Doubt Following Drop Below 1.1000


4 Hour Chart – Created Using FXCM Marketscope 2.0



By David de Ferranti, Market Analyst, FXCM



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USD/CAD Recovery In Doubt Following Drop Below 1.1000

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