USD/CAD Technical Analysis: Readying to Turn Lower?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.1204, 1.1145, 1.1092
- Resistance: 1.1329, 1.1361, 1.1406
The US Dollar may be on the verge of a downturn against its Canadian namesake as negative RSI divergence hints at fading upside momentum. Near-term support is at 1.1204, the 23.6% Fibonacci retracement, with break below that on a daily closing basis exposing a rising channel floor at 1.1145. Alternatively, a push above the 38.2% Fib expansion at 1.1329 opens the door for a challenge of the channel top at 1.1361, followed by the 50% threshold at 1.1406.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the short side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.