USD/CAD Technical Analysis – Prices Nearing 6-Month Low
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- USD/CAD Technical Strategy: Flat
- Support: 1.0721, 1.0664, 1.0629
- Resistance: 1.0777, 1.0812-13, 1.0840
The US Dollar continues to sink against its Canadian namesake, with prices dropping to the lowest level in nearly six months. Sellers are now aiming to challenge support at 1.0721, the 100% Fibonacci expansion, with a daily close below that exposing the 123.6% level at 1.0664. Alternatively, a rebound above support-turned-resistance at 1.0777 – the 76.4% Fib – clears the way for a re-test of the 1.0812-13 region marked by the 61.8% expansion and the May 8 low.
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.
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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.