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- USD/CAD Technical Strategy: Flat
- Support: 1.0605, 1.0570, 1.0495
- Resistance: 1.0673-80, 1.0727, 1.0782
The path of the US Dollar against its Canadian counterpart has turned inconclusive amid conflicting technical cues. On one hand, a break below support at a rising trend line set from September 2012 argues in favor of the downside scenario. On the other, the formation of a bullish Piercing Line candlestick pattern hints a bounce may be ahead. A daily close back above the trend line (1.0680) exposes the 50% Fibonacci expansion at 1.0727. Alternatively, a turn below the 76.4% level at 1.0605 aims for a horizontal pivot set from the July 5 close at 1.0570.
Mixed technical cues and looming heavy-duty event risk by way of the US Employment report warn against taking a trade on the long or short side at current levels. We will stand aside, waiting for greater clarity to emerge.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com