USD/CAD Technical Analysis – Opting Against Entering Short
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.0664, 1.0629, 1.0600
- Resistance: 1.0721, 1.0777, 1.0812-13
The Canadian Dollar resumed the advance against its US counterpart, with sellers now poised to push below the 1.07 figure. A narrow close below support at 1.0721, the 100% Fibonacci expansion, has exposed the 1.0664 level marked by the 123.6% level and a rising trend line set from mid-September 2012. Alternatively, a reversal back above 1.0721 opens the way for another challenge of 1.0777, marked by the 76.4% Fibonacci expansion and a falling trend line connecting major swing lows since mid-February.
While the break of resistance argues in favor of a short position, emerging signs of positive RSI divergence hint at ebbing downward momentum and warn against chasing the pair lower. With that in mind, we will opt to remain on the sidelines.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.