Forex: USD/CAD Technical Analysis – Bounce Hinted at Support
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- USD/CAD Technical Strategy: Flat
- Support: 1.1019 (trend line cluster, 23.6% Fib ret.), 1.0859 (38.2% Fib ret.)
- Resistance: 1.1126 (horizontal pivot), 1.1278 (Mar 20 high)
The US Dollar starting to reverse higher against its Canadian namesake, with prices showing a Harami candlestick pattern at support marked by the intersection of a trend line cluster and the 23.6% Fibonacci retracement (1.1019). A break below this barrier initially exposes the 38.2% level at 1.0859. Near-term resistance is at 1.1126, a horizontal pivot, with a breach above that on a daily closing basis targeting the March 20 high at 1.1278.
A Harami formation is a relatively low-impact setup, suggesting it is prudent to wait for confirmation before entering long on the assumption that a move higher is now underway. With that in mind, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com