USD/CAD Technical Analysis: Sellers Threaten 3-Month Trend
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.1280, 1.1215, 1.1138
- Resistance: 1.1311, 1.1384, 1.1466
The US Dollar is testing a pivotal threshold against its Canadian namesake as sellers challenge the bounds of the uptrend traced out since late August. Near-term rising trend line supportis at 1.1280, with a break below that on a daily closing basis exposing the 38.2% Fibonacci retracement at 1.1215. Alternatively, a reversal above the 23.6% level at 1.1311 clears the way for a test of the 1370-84 area (14.6% retracement, October 15 high).
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com