USD/CAD Technical Analysis – May Bottom Under Pressure
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.0812, 1.0777, 1.0721
- Resistance: 1.0840, 1.0868, 1.0903
The US Dollar dropped for a second consecutive day against its Canadian counterpart, hitting the lowest level in over a month. Sellers are testing support in the 1.0812-13 area, marked by the 61.8% Fibonacci expansion and the May 8 low. A break below that on a daily closing basis targets the intersection of the 76.4% level and a falling trend line connecting major swing lows since mid-February at 1.0777. Alternatively, a reversal above the 50% Fib at 1.0840 aims for the 38.2% expansion at 1.0868.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined 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.