Forex: USD/CAD Technical Analysis – Resistance Above 1.11 Eyed
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- USD/CAD Technical Strategy: Pending Long
- Support: 1.1066 (23.6% Fib exp.), 1.1006 (14.6% Fib exp.)
- Resistance: 1.0970 (38.2% Fib ret.), 1.1067 (23.6% Fib ret.)
The Canadian Dollar continues to weaken against its US namesake after prices pushed back above the 1.10 figure and breached resistance at 1.1066 marked by the 23.6% Fibonacci expansion. Buyers now aim to challenge the 38.2% level at 1.1163, with a push above that exposing the 50% Fib at 1.1241. Alternatively, a turn back below 1.1066 eyes the 14.6% expansion at 1.1006.
Entering long at current levels is inconsistent with at least a 1:1 risk/reward ratio assuming a reasonable invalidation points for a stop-loss is 1.0909, the February 19 low. With that in mind, we will hold off on taking a trade for now and look for a pullback to take the 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.