USD/CAD Technical Analysis: Attempting to Resume Uptrend
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- USD/CAD Technical Strategy: Flat
- Support: 1.1297, 1.1215, 1.1138
- Resistance: 1.1353, 1.1414, 1.1466
The US Dollar is attempting to turn higher anew after testing the lower bound of the uptrend against its Canadian namesake in play since late August. Near-term rising trend line supportis at 1.1297, with a break below that on a daily closing basis exposing the 38.2% Fibonacci retracement at 1.1215. Alternatively, a reversal above falling channel resistance at 1.1353 clears the way for a test of the 23.6% Fib expansion at 1.1414.
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.