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- USD/CAD Technical Strategy: Flat
- Support: 1.0892 (38.2% Fib exp.), 1.0842-57 (50% Fib exp., Apr 9 low)
- Resistance: 1.0942-53 (Apr 30 low, 23.6% Fib exp.), 1.0991 (14.6% Fib exp.)
The US Dollar tumbled against its Canadian counterpart, clearing April’s swing bottom to sink to a four-month low. Sellers now aim to challenge the 61.8% Fibonacci expansion at 1.0792, with a break below that exposing the 76.4% level at 1.0731. Alternatively, a reversal back above the 50% Fib at 1.0842 aims for the 38.2% expansion at 1.0892.
It seems ill-advised to chase the pair from a tactical perspective at this point and we will opt not to pursue a short position, remaining on the sidelines until a more attractive trade setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com