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USD/CAD: Dark Clouds Indicate Pullback

Published 12/17/2014, 06:14 AM
Updated 07/09/2023, 06:31 AM

Talking Points
  • Strategy: Flat
  • Dark Cloud Cover Awaiting Confirmation On The Daily
  • H4 Chart Reveals Reluctance From Traders Near 1.1600

USD/CAD’s recent ascent may be at risk as a Dark Cloud Cover pattern awaits confirmation. A successive down period is required to validate the signal and warn of a potential pullback. Buying interest would likely be renewed at former resistance-turned-support at 1.1460.

USD/CAD: Dark Cloud Cover Awaits Confirmation

USD/CAD

The four hour chart reveals reluctance from traders as demonstrated by a string of Doji formations. This does little to instill confidence in the prospect of a pullback (as signaled by the daily). A slip beneath buying interest at the psychologically-significant 1.1600 handle would be required to cast the immediate risk lower over the session ahead.

USD/CAD: Dojis Indicate Indecision From Traders Near 1.1600

USD/CAD: Indecision

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