USD/CAD Technical Analysis: Passing on Short Trade Setup
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- USD/CAD Technical Strategy: Flat
- Support: 1.1177, 1.1142, 1.1110
- Resistance: 1.1329, 1.1389, 1.1466
The US Dollar may have marked a critical reversal downward against its Canadian namesake after prices pierced a barrier guiding the uptrend since September. Near-term channel support is at 1.1177, with a break below that on a daily closing basis exposing the 38.2% Fibonacci retracement at 1.1142. Alternatively, a reversal above trend line support-turned-resistance at 1.1329 clears the way for a test of the 23.6% Fib expansion at 1.1389.
The dominant USDCAD trend has favored the upside for over two years. With that in mind, we will opt against taking up the short side and continue to monitor the pullback for a buying opportunity instead.
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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.