USD/CAD Technical Analysis: Buyers Reclaim 1.10 Figure
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- USD/CAD Technical Strategy: Flat
- Support: 1.0999, 1.0934, 1.0896
- Resistance: 1.1069, 1.1125, 1.1182
The US Dollar is attempting to rekindle the advance against its Canadian counterpart as buyers reclaim a foothold above the 1.10 figure. Near-term resistance is at 1.1069, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 1.1098-1.1125 area marked by the September 15 high and the 50% level. Alternatively, a reversal below the 23.6% Fib at 1.0999 clears the way for a test of horizontal resistance-turned-support at 1.0934.
Risk/reward considerations argue against entering long as prices hover just at resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable 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.