USD/CAD Technical Analysis: Bulls Rejected at 1.10 Again
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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 turned lower as expected against its Canadian counterpart after prices produced a Shooting Star candlestick. A daily close below the 23.6% Fibonacci retracement at 1.0934 exposes the 38.2% level at 1.0874. Alternatively, a turn above the 1.0985-98 area marked by the August 6 high and the 50% Fib expansion clears the way for a test of the 61.8% level at 1.1043.
Risk/reward considerations argue against entering short with prices sitting at 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.