USD/CAD Technical Analysis – Double Bottom in the Works?
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- USD/CAD Technical Strategy: Flat
- Support: 1.0828 (double bottom?)
- Resistance: 1.0892 (trend line), 1.0923 (23.6% Fib ret.), 1.0941 (May 21 high)
The US Dollar may be in the process of setting a double bottom against its Canadian counterpart above the 1.08 figure. A daily close above falling trend line resistance (now at 1.0892) exposes 1.0923, the 23.6% Fibonacci retracement. This is swiftly followed by the May 21 high at 1.0941. Near-term support lines up at 1.0828, the May 8 close.
Prices are too close to resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a confirmed bearish reversal signal warns against taking up the short side. Wewill remain flat for now.
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.