USD/CAD Technical Analysis: Is a Triple Top in the Works?
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- USD/CAD Technical Strategy: Flat
- Support: 1.0934, 1.0874, 1.0825
- Resistance:1.0998, 1.1043, 1.1098
The US Dollar may be carving out a triple top against its Canadian namesake as prices show a Shooting Star candlestick below resistance. Near-term support is at 1.0934, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 1.0874. Alternatively, a reversal above the 1.0985-98 region marked by the August 6 high and the 50% Fib expansion opens the door for a challenge of the 61.8% level at 1.1043.
A Shooting Star points to indecision and does not amount to an actionable short entry signal by itself absent further confirmation. We remain on the sidelines for the time being, waiting for a more actionable trading opportunity to present 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.