USD/CAD Chart Setup Warns of Weakness Ahead
Prices are testing resistance at 1.0325, the 138.2% Fibonacci expansion. Negative RSI divergence warns of ebbing bullish momentum, hinting at weakness ahead. A break below initial support at 1.0258, the 114.6% level, exposes the 1.0207-19 area marked by the 100% Fib as well as formerly broken channel and trend line resistance levels now recast as support. An actionable trade setup is absent and we will stand asidefor now.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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