USD/CAD Technical Analysis – Upward Reversal in the Works?
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- USD/CAD Technical Strategy: Flat
- Support: 1.0970 (38.2% Fib ret.), 1.0892 (50% Fib ret.)
- Resistance: 1.1067 (23.6% Fib ret.), 1.1223 (Jan 31 high)
The Canadian Dollar continued to edge higher as expected. A Spinning Top candlestick above support at 1.0970 marked by the 38.2% Fibonacci retracement points to indecision and hints a bounce may be ahead. A reversal back above the 23.6% level at 1.1067 aims for the January 31 high at 1.1223.Alternatively, breaking below support targets the 50% Fib at 1.0892.
A long position at current levelsseems premature absent confirmation of reversal. On the other hand, a long tradelooks unattractive from a risk/reward perspective as prices too close to relevant resistance. We will continue to wait on the sidelines for an actionable setup to present itself.
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.