Forex: USD/CAD Technical Analysis – Opting to Stay Flat for Now
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- USD/CAD Technical Strategy: Flat
- Support: 1.1120 (23.6% Fib exp.), 1.1053 (Feb 25 low)
- Resistance: 1.1162 (38.2% Fib exp.), 1.1195 (50% Fib exp.)
The Canadian Dollar is back on the defensive against its US namesake, with USD/CAD pushing above resistance at 1.1120 marked by the 23.6% Fibonacci expansion. The bulls now aim to challenge the 38.2% level at 1.1162, with a break above that aiming for the 50% Fib at 1.1195. Alternatively, a reversal back below 1.1120 exposes the February 25 low at 1.1053.
Overall positioning remains choppy, making it difficult to identify a clearly defined trade setup. Furthermore, the close proximity of near-term up- and downside levels argues against a directional bet on risk/reward grounds. We will remain flat until something more attractive materializes.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com