USD/CAD Technical Analysis – Weighing Conflicting Cues
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.0837 (channel floor), 1.0813 (May 8 low), 1.0782 (38.2% Fib ret.)
- Resistance: 1.0860 (trend line), 1.0923 (23.6% Fib exp.)
The US Dollar has found interim support above the 1.08 figure against its Canadian counterpart but the near-term trend bias remains clouded in uncertainty. Price action seen after the pair set its latest swing low on May 8 may be carving out a rising channel or a continuation Flag pattern. The former carries bullish implications while the latter argues for the downside, with confirmation on which of these two alternatives is more likely absent for the time being.
A daily close above falling trend line resistance at 1.0860 targets the 23.6% Fibonacci expansion at 1.0923, followed by the channel/flag top at 1.0945. Alternatively, a move below the formation’s floor at 1.0837 targets the May 8 low at 1.0813, with the 38.2% Fib expansion at 1.0782 exposed thereafter.
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.