Forex: USD/CAD Technical Analysis – Uptrend Support Challenged
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- USD/CAD Technical Strategy: Flat
- Support: 1.1006 (trend line from Jan’13), 1.0930 (trend line from Oct’12)
- Resistance: 1.1048 (14.6% Fib exp.), 1.1134 (23.6% Fib exp.)
The Canadian Dollar is attempting to drive higher against its US namesake once again. Prices edged below support at 1.1048, the 14.6% Fibonacci expansion, to test rising trend line support at 1.1006. A break below this boundary targets a longer-term upward sloping barrier at 1.0930. Alternatively, a turn back above 1.1048 aims for the 23.6% level at 1.1134.
Prices are too close to relevant support to justify a short trade from a risk/reward perspective. A long trade seems premature however until positioning delivers a meaningful reversal signal to suggest support will hold. As such, we will remain flat for the time being.
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.