USD/CAD Technical Analysis – Prices Hit One-Month High
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- USD/CAD Technical Strategy: Flat
- Support: 1.0856 (trend line), 1.0828 (double bottom?)
- Resistance: 1.0923-41 (23.6% Fib ret., May 21 high), 1.0991 (38.2% Fib ret.)
The US Dollar may be in the process of setting a double bottom against its Canadian counterpart above the 1.08 figure. The bulls are testing resistance in the 1.0923-41 area, marked by the 23.6% Fibonacci retracement and the May 21 high. A break above this barrier on a daily closing basis exposes the 38.2% level at 1.0991. Near-term term support is at a recently broken falling trend line set from late April, now at 1.0856, followed by the would-be double bottom at 1.0828.
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.