USD/CAD Dojis Denote Deliberation Near Critical 1.0900 Floor

By DailyFx | August 14, 2014 AAA

DailyFX.com -

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Dojis Signal Hesitation Near The 1.0900 Barrier
  • Daily Close Below 1.09 Required To Open 1.0810

USD/CAD remains buoyant above the 1.0900 handle as several Doji formations suggests hesitation from the bears to lead the pair lower. A retreat under the 1.0900 floor would be required to cast the immediate risk lower and setup a test of the 1.0810 mark. However, at this stage signs of an uptrend remain intact for the pair, which suggests the possibility for a retest of the recent highs should not be neglected.

USD/CAD: Dojis Highlight Hesitation Near The 1.0900 Barrier

USD/CAD Dojis Denote Deliberation Near Critical 1.0900 Floor

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

Scrutinizing the four hour chart reveals several Doji formations near the psychologically-significant 1.0900 handle. While not key reversal patterns the candlesticks suggest selling pressure on the pair may have eased. Similarly to the daily, this indicates the potential for a retest of the recent highs.

USD/CAD: At A Crossroads Near Critical Support

USD/CAD Dojis Denote Deliberation Near Critical 1.0900 Floor

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

By David de Ferranti, Currency Analyst, DailyFX

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