USDCAD: Prices Hint at Bottom in the Works
Prices continue to consolidate below the would-be neckline of an inverse Head and Shoulders bottom, now at 0.9860. This is reinforced by a falling trend line set from the June 4 high at 0.9870. Confirmation on a daily close above the latter level implies a measured upside target at 1.0143. Support lines up at 0.9743, 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 0.9655. Risk/reward considerations argue against entering a trade at current levels and we will stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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