USD/CAD Technical Analysis: Prices Drop Most in a Month
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- USD/CAD Technical Strategy: Flat
- Support: 1.1311, 1.1215, 1.1138
- Resistance: 1.1370, 1.1476, 1.1560
The US Dollar was rejected at resistance below the 1.15 figure, issuing the largest daily decline in a month against its Canadian namesake. Near-term support is at 1.1311, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 1.1215-31 area (38.2% level, rising trend line). Alternatively, a turn above the 14.6% retracement at 1.1370 clears the way for a test of the 61.8% Fib expansion at 1.1476.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.