USD/CAD Technical Analysis: Double Top in the Works?
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- USD/CAD Technical Strategy: Flat
- Support: 1.1069, 1.0999, 1.0931
- Resistance: 1.1125, 1.1182, 1.1251
The US Dollar is showing signs of possible topping against its Canadian counterpart with prices on pace to produce a Shooting Star candlestick. Near-term support is at 1.1048, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 1.1003. Alternatively, a reversal above the 1.1098-1125 area marked by the September 15 top and the 50% Fib expansion clears the way for a test of the 61.8% level at 1.1182.
If confirmed on a daily closing basis, a Shooting Star candle speaks to indecision and is not sufficient of a reversal signal by itself without further confirmation. With that in mind, we will remain on the sidelines and wait 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.