USD/CAD Technical Analysis: Support Held Above 1.08 Mark
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- USD/CAD Technical Strategy: Flat
- Support: 1.0853, 1.0809, 1.0765
- Resistance:1.0908, 1.0973, 1.0985-97
The Canadian Dollar launched an aggressive recovery against its US namesake as expected after showing a Dark Cloud Cover candle pattern coupled with negative RSI divergence. A daily close below the 38.2% Fibonacci retracement at 1.0853 exposes the 50% level at 1.0809. Alternatively, a turn back above the 23.6% Fib at 1.0908 opens the door for a challenge of rising trend line support-turned-resistance at 1.0973.
Positioning is inconclusive at this point. Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.