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Forex: USD/CAD Technical Analysis – Support Above 1.10 in Focus

Forex: USD/CAD Technical Analysis – Support Above 1.10 in Focus

2014-04-02 02:47:00
Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.1019 (23.6% Fib ret.), 1.0859 (38.2% Fib ret.)
  • Resistance: 1.1092 (trend line), 1.1126 (horizontal pivot)

The US Dollar may be vulnerable to further selling against its Canadian counterpart after prices cleared support at a rising trend line set from mid-February. Near-term support is at 1.1019, the 23.6% Fibonacci retracement. A break below this barrier on a daily closing basis exposes the 38.2% level at 1.0859. Trend line support-turned-resistance is now at 1.1092, with a move above that eyeing a horizontal pivot at 1.1126.

Risk/reward considerations argue against entering short while prices trade so close to relevant support. On the other hand, a long position lacks an actionable upward reversal signal to suggest that resistance will hold. As such, we will remain flat for now.

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dailyclassics_usd-cad_body_Picture_12.png, Forex: USD/CAD Technical Analysis – Support Above 1.10 in Focus

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.


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