USD/CAD Technical Analysis – Support Above 1.08 in Focus
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- USD/CAD Technical Strategy: Flat
- Support: 1.0830 (channel floor), 1.0813 (May 8 low), 1.0782 (38.2% Fib ret.)
- Resistance: 1.0847 (trend line), 1.0923 (23.6% Fib exp.)
The US Dollar continues to struggle to build higher having found support above the 1.08 figure against its Canadian counterpart. A break above falling trend line resistance at 1.0847 on a daily closing basis exposes the 23.6% Fibonacci expansion at 1.0923. Alternatively, a move below upward-sloping support at 1.0830 aims for the May 8 low at 1.0813, with the 38.2% Fib expansion at 1.0782 exposed thereafter.
Price action since early May could be tracing out a rising channel or a 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 now. With that in mind, we will remain flat.
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.