Forex: USD/CAD Technical Analysis – Turn Lower Hinted Ahead
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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 may be readying to launch a recovery against its US counterpart after prices showed a Shooting Star candle below resistance at 1.1163, the 38.2% Fibonacci expansion. A break below support at 1.1066, the 23.6% level, exposes the 14.6% Fib at 1.1006. Alternatively, a push through resistance aims for the 50% expansion at 1.1241.
A Shooting Star candle marks indecision and requires confirmation to become actionable. Furthermore, prices are too close to relevant support to justify a short trade from a risk/reward perspective. We will remain on the sidelines for now until something more attractive presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com