USDCAD – triple Doji signals strong indecision but bias remains negative

Slobodan Drvenica Windsor Brokers

USDCAD

The pair remains in directionless mode on Thursday and forming the third straight Doji. Strong indecision signal was generated after Wednesday’s action ended in Doji candle with very long legs.
Overall structure is bearish and keeps focus shifted lower.
Key near-term support at 1.2355 (05 Jan low) is eyed for retest after the price spiked to 1.2360 low on Wednesday, but initial requirement is close below cracked 1.2389 support (Fibo 61.8% of 1.2061/1.2920 ascend) which would signal continuation of larger downtrend from 1.2920 (19 Dec peak).
Sustained break below 1.2355 pivot would signal bearish continuation and expose nect target at 1.2263 (Fibo 76.4% of 1.2061/1.2920).
Falling 10SMA continues to cap despite being cracked on Wednesday’s spike to 1.2536 and marks initial resistance at 1.2456.
Extended upticks should hold below descending 20SMA (1.2543) to keep near-term bearish bias intact.

Res: 1.2456; 1.2500; 1.2543; 1.2570
Sup: 1.2427; 1.2396; 1.2355; 1.2300

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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