USD/CAD Technical Analysis: Double Top Resistance at Risk
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- USD/CAD Technical Strategy: Flat
- Support: 1.0954, 1.0853, 1.0808
- Resistance:1.0998, 1.1043, 1.1098
The US Dollar launched upward against its Canadian counterpart in a bid to clear double-top resistance below the 1.10 figure. A daily close above the 1.0985-98 region marked by the August 6 high and the 50% Fibonacci expansion exposes the 61.8% level at 1.1043. Alternatively, a turn below the 38.2% Fib expansion at 1.0954 clears the way for a test of the 38.2% Fib retracement at 1.0853.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind 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.