USD/CAD Technical Analysis – Prices Sink to 6-Month Low
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- USD/CAD Technical Strategy: Flat
- Support: 1.0605, 1.0570, 1.0495
- Resistance: 1.0673, 1.0727, 1.0782
The US Dollar renewed is push downward against its Canadian counterpart, slipping to the lowest level in six months. Significant support comes in at 1.0605, the 76.4% Fibonacci expansion, with a break below that on a daily closing basis targeting a horizontal pivot established from the July 5 2013 close at 1.0570. A daily close below that initially targets the 50% level at 1.0628. Alternatively, a reversal above the 61.8% Fib at 1.0673 clears the way for a retest of the 50% expansion at 1.0727.
While entering short is tempting from a purely technical perspective, we will tactically opt to stand aside. Heavy-duty event risk by way of the US Employment report looms ahead and we will wait to see how that plays out before committing to a directional bias.
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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.