Forex: USD/CAD Technical Analysis – Loonie Testing 1-Month High
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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 is pressing higher as expected against its US counterpart. A break below support at 1.0970 marked by the 38.2% Fibonacci retracement on a daily closing basis targets the 50% Fib at 1.0892. Alternatively, a reversal above the 23.6% retracement at 1.1067 aims for the January 31 high at 1.1223.
Entering short seems premature until a break of support is confirmed on a daily closing basis. On the other hand, attempting to pick a bottom and taking a trade on the long side lacks any meaningful evidence in technical positioning thus far. We will remain on the sidelines for now.
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.