Forex: USD/CAD Technical Analysis – Choppy Above 1.10 Figure
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- USD/CAD Technical Strategy: Flat
- Support: 1.1051 (50% Fib ret.), 1.1018 (61.8% Fib ret.)
- Resistance: 1.1085 (38.2% Fib ret.), 1.1126 (23.6% Fib ret.)
Prices declined expected after showing a Shooting Star candle. The pair found interim support at 1.1051, the 50% Fibonacci retracement, and is attempting to recover above the 38.2% level at 1.1085. A daily close above this barrier exposes the 23.6% Fib at 1.1126. Alternatively, a reversal below support targets the 61.8% retracement at 1.1018.
Choppy positioning around near-term technical levels warns against taking a position on risk/reward grounds. Furthermore, confirmation of an upside breakout is absent for the time being. We will remain on the sidelines for the time being, waiting for a more attractive setup to emerge.
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.