USD/CAD Technical Analysis: Bulls Reclaim 1.07 Figure
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- USD/CAD Technical Strategy: Flat
- Support: 1.0700, 1.0620, 1.0570
- Resistance: 1.0749, 1.0790, 1.0830
The US Dollar turned higher against its Canadian namesake as expected after prices completed a bullish Piercing Line candlestick pattern. Buyers are aiming to challenge the 38.2% Fibonacci retracement at 1.0794, with a daily close above that exposing the 50% level at 1.0790. Alternatively, a reversal below the 23.6% Fib at 1.0700 aims for the July 3 low at 1.0620.
Risk/reward considerations argue against entering long with prices trading in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. 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.