Strategy: Flat
USDCAD put in a bearish Dark Cloud Cover candlestick pattern below resistance at 1.0411, the 76.4% Fibonacci retracement level, hinting a move lower is ahead. Entering long here doesn’t appear attractive from a risk/reward perspective however and we will remain on the sidelines for now. Initial support lines up at 1.0342, the 61.8% Fib, with a break below that exposing the 50% level at 1.0287.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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