USD/CAD Technical Analysis: Downturn Hinted Below 1.11
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- USD/CAD Technical Strategy: Flat
- Support: 1.1043, 1.0985, 1.0915
- Resistance: 1.1098, 1.1187, 1.1276
The US Dollar may be carving out an interim top against its Canadian namesake as prices complete a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 1.1043, the 61.8% Fibonacci expansion, with a break below that on daily closing basis exposing the 23.6% Fib retracement at 1.0985. Alternatively, a turn above the 76.4% expansion at 1.1098 opens the door for a challenge of the 100% threshold at 1.1187.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.