USD/CAD 2014 High In Focus Amid Absence Of Reversal Candlesticks

DailyFX.com -

Talking Points

• USD/CAD Technical Strategy: Longs Preferred

• Absence of Reversal Signals May Open Further Gains

• Sights Turn To 2014 High Following Breach Of 1.11

USD/CAD has resumed its ascent after encountering some intraday turbulence near 1.1200. An absence of reversal candlesticks may keep the pair on course for a revisit of the 1.1270 destination. Yet, short body candles do little to inspire confidence in the momentum behind the recent move. A slide back under the 1.1100 barrier would be required to warn of a correction for the pair.

USD/CAD: 1.1270 Ceiling In Focus

USD/CAD 2014 High In Focus Amid Absence Of Reversal Candlesticks

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

The four hour chart reveals some hesitation from traders as denoted by a Doji near 1.1215. However, the candlestick is not considered a key reversal pattern - casting doubt on the potential for a correction over the session ahead.

USD/CAD: Doji Suggests Reluctance By The Bulls Near Session Highs

USD/CAD 2014 High In Focus Amid Absence Of Reversal Candlesticks

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

By David de Ferranti, Currency Analyst, DailyFX

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