USD/CAD Technical Analysis: Waiting to Confirm a Top
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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 move lower against its Canadian counterpart after prices completed a Bearish Engulfing candlestick pattern. A daily close below the 14.6% Fibonacci expansionat 1.1176 exposes the 1.1098-1.1116 area marked by the September 15 high and the 23.6% Fib retracement. Alternatively, a push above the 23.6% expansion at 1.1234 opens the door for a challenge of the March 20 high at 1.1278.
Prices are wedged too closely between near-term support and resistance levels to justify a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines, waiting for a more compelling opportunity to emerge.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com