USD/CAD Technical Analysis – Digesting Trend Line Break
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- USD/CAD Technical Strategy: Flat
- Support: 1.0657, 1.0628, 1.0600
- Resistance: 1.0675, 1.0693, 1.0715
The US Dollar paused to digest losses against its Canadian namesake after dripping through rising trend support set from September 2012. Near-term support is at 1.0657, the 38.2% Fibonacci expansion. A daily close below that initially targets the 50% level at 1.0628. Alternatively, a move back above the trend line – now at 1.0675 – clears the way for another challenge of the 23.6% Fib at 1.0693.
The available trading range is too narrow to justify entering a long or a short position at current levels from a risk/reward perspective. With that in mind, we will remain on the sidelines for the time being, waiting for an actionable setup to present itself.
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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.