USDCAD: Upswing Hinted at Channel Bottom
USDCAD edged higher after putting in a Bullish Engulfing above support marked by the bottom of a falling channel set from the June 1 swing high. Prices are now testing resistance at 1.0065, the 14.6% Fibonacci retracement, with a break higher exposing the 23.6% level at 1.0105. Risk/reward considerations argue against entering long at current levels and we will stand aside for now until a more compelling setup presents itself. Near-term support is now at the parity figure, followed by the channel bottom at 0.9983.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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