Forex: USD/CAD Technical Analysis – Deeper Losses Seen Ahead
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- USD/CAD Technical Strategy: Flat
- Support: 1.0935 (trend line from Oct), 1.0909 (Feb 19 low)
- Resistance: 1.1016 (trend line from Jan), 1.1054 (range bottom)
The Canadian Dollar is aiming to continue higher against its US counterpart after prices cleared support at a rising trend line set from early January. Sellers now aim for a larger trend line barrier established from October, now at 1.0935. A break below that initially targets the February 19 low at 1.0909. Alternatively, a reversal back above broken trend line support (now at 1.1016) aims for range support-turned-resistance at 1.1054.
Prices are too close to relevant support to justify a short trade from a risk/reward perspective. Entering long is premature without a defined reversal signal however. We will continue to wait for an actionable trade setup from the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com