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USD/CAD Technical Analysis: Support Found Above 1.11

USD/CAD Technical Analysis: Support Found Above 1.11

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.1165, 1.1097, 1.1029
  • Resistance: 1.1249, 1.1300, 1.1384

The US Dollar fell against its Canadian namesake as expected after negative RSI divergence pointed to ebbing bullish momentum below the 1.14 figure. A daily close below the 38.2% Fibonacci retracement at 1.1165 exposes the 1.1097-98 zone (50% level, September 15 high). Alternatively, a reversal above the 1.1232-49 area (channel floor support-turned-resistance, 23.6% Fib) opens the door for a challenge of the 14.6% threshold at 1.1300.

Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

USD/CAD Technical Analysis: Support Found Above 1.11

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.

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