USD/CAD Technical Analysis: Loonie Gains Hinted Ahead
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- USD/CAD Technical Strategy: Flat
- Support: 1.1116, 1.1021, 1.0945
- Resistance: 1.1308, 1.1379, 1.1450
The US Dollar may move lower against its Canadian counterpart after prices completed a bearish Dark Cloud Cover candlestick pattern. A daily close below the 23.6% Fibonacci retracementat 1.1116 exposes the 38.2% level at 1.1021. Alternatively, a turn above the 1.1278-1.1308 area marked by the March 20 high and the 38.2% Fib opens the door for a challenge of the 50% threshold at 1.1379.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.