Forex: USD/CAD Technical Analysis – Looking for Cues Near 1.11
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- USD/CAD Technical Strategy: Flat
- Support: 1.1061 (14.6% Fib exp.), 1.0909 (Feb 19 low)
- Resistance: 1.1155 (23.6% Fib exp.), 1.1194 (Feb 21 high), 1.1223 (Jan 31 high)
Prices are testing resistance at 1.1155, the 23.6% Fibonacci expansion. A break higher on a daily closing basis exposes recent swing highs in the 1.1194-1.1223 area, followed by the 38.2% level at 1.1307. Near-term support is at 1.1061, the 14.6% Fib. A reversal beneath this barrier exposes the February 19 low at 1.0909.
A long position at current levels is attractive absent a confirmation of a break above resistance. Meanwhile, a Hanging Man candlestick below resistance is hinting at indecision and may precede a pullback but is likewise insufficient to make for an actionable trade signal. We will opt to remain flat for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com