Forex: USD/CAD Technical Analysis – A Turn Higher 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 may be on the verge of a reversal against its US namesake after prices put in a Hammer candlestick above support at 1.0970 marked by the 38.2% Fibonacci retracement, hinting downside momentum is giving way to indecision. A reversal above resistance marked by the 23.6% retracement at 1.1067 aims for the January 31 high at 1.1223. Alternatively, a breach of support on a daily closing basis targets the 50% Fib at 1.0892.
Indecision is not necessarily a sign of reversal and entering long seems premature absent defined confirmation. 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