Forex: USD/CAD Technical Analysis – Support Met Above 1.09 Mark
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- USD/CAD Technical Strategy: Flat
- Support: 1.0919 (50% Fib ret.), 1.0834 (61.8% Fib ret.)
- Resistance: 1.0974-1.1003 (38.2% Fib ret., trend line), 1.1126 (horizontal pivot)
The US Dollar dropped to a two-month low against its Canadian counterpart after finding resistance above the 1.12 and reversing downward as expected. A break below support at 1.0919, the 50% Fibonacci retracement, exposes the 61.8% level at 1.0834. Alternatively, a reversal above the 1.0974-1.1003 area marked by a rising trend line set from mid-January and the 38.2% Fib aims for a horizontal pivot level at 1.1126.
Prices are too close to relevant support to justify entering short from a risk/reward perspective. On the other hand, the absence of a bullish reversal signal hints it is premature to take up the long side. We will continue to stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com