USD/CAD Technical Analysis – Multi-Year Support at Risk
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- USD/CAD Technical Strategy: Flat
- Support: 1.0664, 1.0629, 1.0600
- Resistance: 1.0721, 1.0777, 1.0812-13
The US Dollar continues to sink against its Canadian namesake, with prices now within striking distance of rising trend line support set from September 2012. This barrier is reinforced by the 123.6% Fibonacci expansion at 1.0664, with a break downward exposing the 138.2% level at 1.0629. Alternatively, a turn above 1.0721 – the 100% Fib – clears a path for a test of 1.0777, marked by the 76.4% expansion and a falling trend line connecting key swing lows since mid-February.
Risk/reward considerations warn against entering short with prices sitting just above relevant support. Alternatively, the absence of a defined bullish reversal signal suggests it is premature to take up the short side. On balance, we remain flat.
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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.