USD/CAD Technical Analysis: Seven-Month High Challenged
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- USD/CAD Technical Strategy: Flat
- Support: 1.1220, 1.1166, 1.1078
- Resistance: 1.1308, 1.1379, 1.1450
The US Dollar resumed the advance against its Canadian counterpart, rising to the highest level in nearly seven months. A daily close above the 1.1278-1.1308 area marked by the March 20 high and the 38.2% Fibonacci expansion exposes the 50% level at 1.1379. Alternatively, a turn below the 23.6% Fib at 1.1220 opens the door for a challenge of the 14.6% expansion at 1.1166.
Risk/reward considerations argue against entering long with prices in close proximity to 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.