USD/CAD Technical Analysis – Support Met Above 1.07
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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 Canadian Dollar continues to advance against its US namesake, hitting the lowest level in nearly six months. Sellers are testing support at 1.0721, the 100% Fibonacci expansion. A break below that on a daily closing basis initially exposes 1.0664, the intersection of the 123.6% level and a rising trend line set from mid-September 2012. Resistance is at 1.0777, marked by the 76.4% Fib and a falling trend line connecting major swing lows since mid-February. A reversal above that aims for the 1.0812-13 zone, the crossing of the 61.8% expansion and the May 8 low.
Risk/reward considerations argue against entering short with prices sitting squarely at support. On the other hand, taking up the long side looks premature absent a defined bullish reversal signal. 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.