USD/CAD Technical Analysis – All Eyes on Double Bottom
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- USD/CAD Technical Strategy: Flat
- Support: 1.0828-50 (23.6% Fib exp., double bottom?), 1.0782 (38.2% Fib exp.)
- Resistance: 1.0892 (14.6% Fib exp.), 1.0941 (May 21 high)
The US Dollar declined for a fourth consecutive day against its Canadian counterpart after finding resistance below the 1.10 figure. Prices are testing the 1.0828-50 zone marked by the 23.6% Fibonacci expansion and a would-be double bottom. A daily close below this barrier initially targets the 38.2% level at 1.0782. Alternatively, a turn above the 14.6% Fib at 1.0892 clears the way for a test of 1.0941, the May 21 high.
Risk/reward considerations argue against entering short with prices sitting just above support. On the other hand, taking up the long side is premature absent a defined bullish reversal signal. We will 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.