USD/CAD Technical Analysis – Two-Year Uptrend Broken
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- USD/CAD Technical Strategy: Flat
- Support: 1.0657, 1.0628, 1.0600
- Resistance: 1.0673, 1.0693, 1.0715
The US Dollar looks vulnerable to deeper losses against its Canadian counterpart after prices broke through rising trend support set from September 2012. Sellers are now testing the 38.2% Fibonacci expansion at 1.0657, with a break below that on a daily closing basis exposing the 50% level at 1.0628. The trend line – now at – has been recast as near-term resistance. A turn back above that eyes the 23.6% Fib at 1.0693.
Prices are too close to near-term support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal suggesting a long position is premature. On balance, we will remain on the sidelines 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.