USD/CAD Technical Analysis – Long Trade Setup Pending
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- USD/CAD Technical Strategy: Flat
- Support: 1.0807-13 (May 8 low, trend line)
- Resistance: 1.0937 (trend line), 1.1072 (23.6% Fib exp.)
The US Dollar may be gearing up for gains against its Canadian namesake after prices produced a bullish Piercing Line candlestick pattern. Initial resistance is at 1.0937, marked by a falling trend line set from the March 20 high, with a break above that exposing the 23.6% Fibonacci expansion at 1.1072. Support stands in the 1.0807-13 area, marked by the May 8 low and a falling trend line set from mid-February.
Prices are too close to relevant resistance to justify a long position at current levels from a risk/reward perspective. We will stand aside for now, looking for a break above resistance to yield a buying opportunity.
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.