USD/CAD Technical Analysis: A Top in Place Below 1.13?
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- USD/CAD Technical Strategy: Flat
- Support: 1.1176, 1.1098, 1.1021
- Resistance: 1.1234, 1.1278, 1.1329
The US Dollar may be forming a top against its Canadian namesake after putting in a Bearish Engulfing candlestick pattern. Near-term support is at 1.1176, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 1.1098-1.1116 area marked by the September 15 high and the 23.6% Fib retracement. Alternatively, a move above the 23.6% expansion at 1.1234 clears the way for a test of the March 20 high at 1.1278.
The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain on the sidelines for now 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