FX.co ★ Candlestick analysis of USD/CAD for 03/08/2010

On a 4-hour timeframe, the USD/CAD pair is likely to be forming a bearish candlestick combination “Falling Three Methods”.
This candlestick combination is developing on the downward trend after the pair has earlier reached the high of 1.0586, where the bulls have not managed to fixate and the bears have become active. At the same time, during the pullback the bulls did not managed to break through the mark of 1.0500, where “Doji” candlestick formed.
However, it is not recommended to open short positions before the completed formation of the bearish model. In this case, a downward movement to 0.0141 with the next target at 0.9930 should be expected.
It should be noted that stop orders are better to place slightly above 1.0261 because the breach of this level will aim the pair at 1.0390.