Forex: USD/CAD Technical Analysis – Support Sub-1.11 Under Pressure
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.1067 (23.6% Fib ret.), 1.0970 (38.2% Fib ret.)
- Resistance: 1.1223 (Jan 31 high)
The Canadian Dollar has launched its most significant advance in over a month, with prices testing support at 1.1067 (marked by the 23.6% Fibonacci retracement). Breaking below this barrier on a daily closing basis initially exposes the 38.2% level at 1.0970. Near-term resistance is at 1.1223, the January 31 high.
Risk/reward considerations argue against entering short with prices sitting squarely at support. Meanwhile, attempting to play the long side would imply taking as given an as-yet baseless assumption that support will hold. We will stand aside for now, waiting for a clear-cut, actionable signal to emerge before committing to a position.
Confirm your chart-based trade setups with the Technical Analyzer.
Daily Chart - Created Using FXCM Marketscope 2.0
New to FX? START HERE!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.