Forex Analysis: USDCAD Sets Sights on Parity Level
Prices completed an inverse Head and Shoulders bottom chart formation with a break above the setup’s neckline, implying a measured upside target at 1.0140. The move likewise cleared resistance at a falling trend line set from the June 4 swing high, reinforcing the case for an upside scenario. Buyers narrowly pushed prices above initial resistance at 0.9943, the 38.2% Fibonacci retracement, exposing the 50% level at 1.0039. The 0.9943 level has been recast as support, with a drop back below that targeting trend line resistance-turned-support at 0.9847. An actionable trade setup is absent for now 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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