USD/CAD Technical Analysis – Support Above 1.08 Critical
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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 remains under pressure against its Canadian namesake after faltering at resistance above the 1.09 figure. Sellers are testing pivotal support in the 1.0828-50 area, marked by the 23.6% Fibonacci expansion and a would-be double bottom. A break below this barrier on a daily closing basis initially exposes the 38.2% level at 1.0782. Alternatively, a reversal back above the 14.6% Fib at 1.0892 opens the door for a challenge of 1.0941, the May 21 high.
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. 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.