USD/CAD Technical Analysis: Down Move Pauses Below 1.12
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- USD/CAD Technical Strategy: Flat
- Support: 1.1165, 1.1097, 1.1029
- Resistance: 1.1249, 1.1300, 1.1384
The US Dollar declined against its Canadian counterpart as expected, with sellers overturning the rising trend set from early September. Near-term term support is at 1.1165, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 1.1097-98 zone (50% level, September 15 high). Alternatively, a reversal above the 1.1224-49 area (channel floor support-turned-resistance, 23.6% Fib) opens the door for a challenge of the 14.6% retracement at 1.1300.
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 long side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com