USD/CAD Technical Analysis: Rebound Stalls Below 1.07
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- USD/CAD Technical Strategy: Flat
- Support: 1.0669, 1.0620, 1.0570
- Resistance: 1.0700, 1.0749, 1.0790
The US Dollar recovered as expected against its Canadian counterpart after putting in a bullish Piercing Line candlestick pattern. Near-term resistance is in the 1.0688-1.0700 area, marked by a trend line set from September 2012 and the 23.6% Fibonacci retracement. A break above that on a daily closing basis exposes the 38.2% level at 1.0749. Alternatively, a reversal below the 14.6% level at 1.0669 clears the way for a challenge of the July 3 low at 1.0620.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. We will remain flat 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.