USD/CAD Technical Analysis: Loonie Sinks to 1-Month Low
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- USD/CAD Technical Strategy: Flat
- Support: 1.0749, 1.0700, 1.0620
- Resistance: 1.0790, 1.0830, 1.0879
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 50% Fibonacci retracement at 1.0790, with a daily close above that exposing the 61.8% level at 1.0830. Alternatively, a reversal below the 38.2% Fib at 1.0749 aims for the 23.6% retracement at 1.0700.
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.
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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.