USD/CAD Technical Analysis: 3-Month Uptrend Under Fire
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- USD/CAD Technical Strategy: Flat
- Support: 1.1286, 1.1215, 1.1138
- Resistance: 1.1311, 1.1384, 1.1466
The US Dollar may be on the verge of a key reversal against its Canadian counterpart as prices test a barrier guiding the advance since late August. A daily close below rising trend line supportat 1.1286 exposes the 38.2% Fibonacci retracement at 1.1215. Alternatively, a turn above the 23.6% Fib at 1.1311 opens the door for a challenge of the 1.1370-84 area marked by the 14.6% retracement and the October 15 high.
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 signal suggests taking up the long side is premature. With that in mind, we will remain on the sidelines for the time being.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com