USD/CAD Technical Analysis: Key Support Below 1.12 Mark
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- USD/CAD Technical Strategy: Flat
- Support: 1.1204, 1.1092, 1.1002
- 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 1.1177-1.1204 area marked by the 23.6% Fibonacci retracement and a rising channel floor exposes the 1.1092-98 zone (38.2% level, September 15 high). Alternatively, a push above the 38.2% Fib expansion at 1.1329 opens the door for a challenge of 1.1406, the intersection of the 23.6% threshold and the channel top.
Positioning is inconclusive at this point. While RSI divergence hints a turn lower is ahead, confirmation on a break through support that would invalidate the uptrend from September low is still pending. On the other hand, a defined bullish signal countering negative cues is absent. 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.