Forex: USD/CAD Technical Analysis – Support Under Fire Anew
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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 is attempting to break out against its US counterpart, with prices probing below support at 1.1067 (23.6% Fibonacci retracement) yet again. A daily close below this level exposes the 38.2% Fib at 1.0970. Near-term resistance is still at 1.1223, the January 31 high.
Attempting to enter short without confirmation after three failed attempts to breach support doesn’t seem prudent. Furthermore, yesterday’s price action snapped four days of consecutive losses and produced a Doji candle, hinting at a possible bounce ahead (though this too is unconfirmed for now). On balance, we will opt to remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com