USD/CAD Technical Analysis: Familiar Trend Line in Focus
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- USD/CAD Technical Strategy: Flat
- Support: 1.0698, 1.0626-39, 1.0570
- Resistance: 1.0753, 1.0780, 1.0875
The US Dollar turned higher against its Canadian namesake as expected after prices completed a bullish Piercing Line candlestick pattern. A daily close above resistance in the 1.0753, marked by a falling trend line set from late March, exposes the 23.6% Fibonacci retracement at 1.0780. Alternatively, a reversal beneath the 14.6% Fib expansionat 1.0698 opens the door for a test 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.