USD/CAD Technical Analysis – Struggling Above 1.09 Mark
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- USD/CAD Technical Strategy: Flat
- Support: 1.0892 (14.6% Fib exp.), 1.0850 (23.6% Fib exp.), 1.0828 (double bottom?)
- Resistance: 1.0941 (May 21 high), 1.0991 (38.2% Fib ret.)
The US Dollar is struggling to make headway against its Canadian counterpart having found resistance below 1.0941, the May 21 high. Near-term support is at 1.0892, the 14.6% Fibonacci expansion, with a break below that exposing the 23.6% level at 1.0850. That is swiftly followed by a potential double bottom at 1.0828. Alternatively, a daily close above 1.0941 clears the way for a test of resistance at 1.0991, the 38.2% Fib retracement.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a confirmed bullish reversal signal warns against taking up the long 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.