USD/CAD Technical Analysis: Loonie Sets 6-Month Low
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- USD/CAD Technical Strategy: Flat
- Support: 1.1182, 1.1098, 1.1052
- Resistance: 1.1251, 1.1364, 1.1477
The US Dollar has set yet another six-month high against its Canadian counterpart, with more of the same hinted ahead. Near-term resistance is at 1.1251, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis exposing the 100% level at 1.1364. Alternatively, a reversal below the 61.8% Fib at 1.1182 clears the way for a test of the 1.1098-1125 area marked by the September 15 top and the 50% expansion.
The available trading range between near-term support and resistance is too narrow to justify entering a long or short position at current levels from a risk/reward perspective. With that in mind, we will remain on the sidelines until a more attractive opportunity presents 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.