USD/CAD Technical Analysis: A Top in Place Below 1.13?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.1116, 1.1021, 1.0945
- Resistance: 1.1308, 1.1379, 1.1450
The US Dollar may be forming a top against its Canadian namesake after putting in a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 1.1116, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 1.1021. Alternatively, a reversal above the 1.1278-1.1308 area marked by the March 20 high and the 38.2% Fib clears the way for a test of the 50% threshold at 1.1379.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.