USD/CAD Technical Analysis: Waiting to Confirm Reversal
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- USD/CAD Technical Strategy: Flat
- Support: 1.0698, 1.0626-39, 1.0570
- Resistance: 1.0770-80, 1.0875, 1.0952
The US Dollar advanced as expected against its Canadian counterpart after putting in a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0770-80 area, marked by the 23.6% Fibonacci retracement and a falling trend line set from late March. A break above this barrier on a daily closing basis exposes the 38.2% level at 1.0875. Alternatively, a turn below support at 1.0698, the 14.6% Fib expansion, clears the way for a challenge of the 1.0626-39 zone (23.6% expansion, July 2 low).
Looking at the weekly chart, a bullish reversal signal hints the down move from the mid-March top has been overturned but confirmation is absent. We will opt to stand aside 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.