USD/CAD Technical Analysis: Topping Hinted Below 1.14
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- USD/CAD Technical Strategy: Flat
- Support: 1.1204, 1.1136, 1.1092
- Resistance: 1.1329, 1.1406, 1.1483
The US Dollar may be topping against its Canadian counterpart as negative RSI divergence warns of ebbing upside momentum. A daily close below the 23.6% Fibonacci retracement at 1.1204 exposes a rising channel floor at 1.1136. Alternatively, a push above the 38.2% Fib expansion at 1.1329 opens the door for a challenge of the 50% threshold at 1.1406.
The latest leg of the rising trend set from early September remains intact for now, hinting it is premature to bet on a bearish reversal for now absent confirmation. With that in mind, we will remain on the sidelines until a more actionable opportunity presents 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.