USD/CAD Technical Analysis: Waiting to Confirm Breakout
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.0700, 1.0620, 1.0570
- Resistance: 1.0749, 1.0790, 1.0830
The US Dollar advanced as expected against its Canadian counterpart after putting in a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0794, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 1.0790. Alternatively, a turn below support at 1.0700, the 23.6% Fib, aims for the July 3 low at 1.0620.
We are opting to stand aside for now. Looking at the weekly chart, it seems added confirmation is needed to claim that the down move from the mid-March top has been overturned before taking a long position. We will wait for that to materialize.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.