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Talking Points

• USD/CAD Technical Strategy: Sidelines Preferred

• Doji Indicates Indecision From Traders Near 1.1270

• Bullish Engulfing Formation Offers Positive Intraday Signal

USD/CAD’s swings around 1.1270 have persisted with a recent Doji formation suggesting indecision from traders. Limited follow-through has been witnessed to the parade of recent candlestick patterns. This in turn leaves a more constructive setup desired before adopting fresh positioning.

USD/CAD: Doji Suggests Indecision Nears 1.1270

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

The four hour chart offers a more constructive picture than the daily. A Bullish Engulfing pattern near 1.1265 offers a positive sign, yet a pair of ensuing short body candles does little to inspire confidence in further gains. Selling pressure is likely to be renewed at intraday resistance near 1.1370.

USD/CAD: Bullish Engulfing Pattern Emerges In Intraday Trade

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

By David de Ferranti, Currency Analyst, DailyFX

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