USD/CAD Technical Analysis: Treading Water Above 1.13
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- USD/CAD Technical Strategy: Flat
- Support: 1.1311, 1.1262, 1.1215
- Resistance: 1.1435, 1.1531, 1.1608
The US Dollar is digesting losses above the 1.13 figure against its Canadian namesake having run into resistance below the 1.15 mark. Near-term support is at 1.1311, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing a rising trend line at 1.1262. Alternatively, a reversal above the 23.6% Fib expansion at 1.1435 clears the way for a test of the 38.2% threshold at 1.1531.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.