USD/CAD Technical Analysis: Prices Find Interim Support
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- USD/CAD Technical Strategy: Flat
- Support: 1.1311, 1.1215, 1.1138
- Resistance: 1.1395, 1.1454, 1.1550
The US Dollar found interim support above the 1.13 figure against its Canadian counterpart after being rejected from five-year highs. A daily close below the 23.6% Fibonacci retracementat 1.1311 exposes the 1.1215-31 area (38.2% level, rising trend line). Alternatively, a turn above the 14.6% Fib expansion at 1.1395 opens the door for a challenge of the 23.6% threshold at 1.1454.
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.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com