USD/CAD Technical Analysis: Prices Soar to Five-Year High
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- USD/CAD Technical Strategy: Flat
- Support: 1.1278, 1.1234, 1.1176
- Resistance: 1.1329, 1.1406, 1.1483
The US Dollar resumed the climb against its Canadian namesake, rising to the highest level in over five years. Near-term resistance is at 1.1329, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 1.1406. Alternatively, a reversal back below resistance-turned-support at 1.1278, the March 20 high, clears the way for a test of the 23.6% expansion at 1.1234.
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