USD/CAD Technical Analysis: Topping Confirmation Pending
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- USD/CAD Technical Strategy: Flat
- Support: 1.1204, 1.1167, 1.1092
- Resistance: 1.1321, 1.1390, 1.1502
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 a break below that on a daily closing basis exposing a rising channel floor at 1.1167. Alternatively, a turn above the 14.6% Fib expansion at 1.1321 clears the way for a test of 1.1390, the intersection of the 23.6% threshold and the channel top.
Positioning is inconclusive. RSI divergence is not an actionable signal by itself and confirmation is needed via invalidation of the uptrend from September’s lows. With that in mind, we will remain flat for now until greater clarity emerges.
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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.