USD/CAD Technical Analysis: Bulls Return at Trend Support
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- USD/CAD Technical Strategy: Flat
- Support: 1.1257, 1.1205, 1.1121
- Resistance: 1.1341, 1.1408, 1.1476
The US Dollar recoiled upward from trend line support, spiking to a three-week high against its Canadian counterpart. A daily close above the 38.2% Fibonacci expansion at 1.1341 exposes the 1.1348-1408 area marked by the October 15 high and the 50% level. Alternatively, a reversal below the 23.6% Fib at 1.1257 opens the door for a challenge of 1.1205, the intersection of the 14.6% expansion and a rising trend line set from late August.
The available trading range is too narrow to justify taking a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines for now, waiting for a more compelling opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com