The Canadian Dollar may be readying to launch a recovery against its US counterpart after prices showed a Shooting Star candle below resistance at 1.1163, the 38.2% Fibonacci expansion. A break below support at 1.1066, the 23.6% level, exposes the 14.6% Fib at 1.1006. Alternatively, a push through resistance aims for the 50% expansion at 1.1241.
A Shooting Star candle marks indecision and requires confirmation to become actionable. Furthermore, prices are too close to relevant support to justify a short trade from a risk/reward perspective. We will remain on the sidelines for now until something more attractive presents itself.