USD/CAD Technical Analysis: Bounce Cut Short Above 1.09
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- USD/CAD Technical Strategy: Flat
- Support: 1.0853, 1.0809, 1.0765
- Resistance:1.0908, 1.0942, 1.0985-97
An attempted US Dollar recovery against its Canadian counterpart was quickly capped above the 1.09 figure following a hawkish BOC policy announcement, as expected. Near-term support is at 1.0853, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 1.0808. Alternatively, a push through resistance in the 1.0939-54 area opens the door for a challenge of the 50% Fib expansion at 1.0998.
Positioning is inconclusive at this point. On one hand, the longer-term trend has favored since September 2012. On the other, an actionable long entry signal is absent for the time being. We will stand aside until an actionable opportunity to re-enter long presents itself.
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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.