Forex: USD/CAD Technical Analysis – Support Sub-1.11 Held for Now
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- 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 continued to grind higher for a fourth consecutive day against its US namesake but prices failed to breach support at 1.1067 (23.6% Fibonacci retracement) once again. A breach of this level on a closing basis initially exposes the 38.2% Fib at 1.0970. Near-term resistance remains 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.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.