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USD/CAD Teases Traders Near Critical Level

Published 04/07/2014, 11:12 AM
Updated 07/09/2023, 06:31 AM

Talking Points
  • USD/CAD Technical Strategy: Sidelines Preferred
  • Psychologically-significant 1.1000 remains on the radar
  • Recovery may be limited with bullish signal missing

After a suspenseful ride with several hints at a bounce, USD/CAD has finally broken below key support at 1.1000. However shorts may be precluded at this stage given that prices still remain within a familiar range between 1.0900 and 1.1300, which leaves noteworthy buying support close by. At the same time, with a bullish reversal signal missing there is doubt cast over a sustained recovery for the pair.

USD/CAD: Back At Critical 1.1000 Handle

Daily Chart - Created Using FXCM Marketscope 2.0

Drilling down to the four-hour chart, the importance of the 1.1000 handle is made more evident. However, even as prices tease at an upside breakout, a recovery may prove limited given the lackluster reaction by traders to several prior bullish signals.

USD/CAD: 4-Hour

Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

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