USD/CAD Technical Analysis: Long Trade Sought on Pullback
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- USD/CAD Technical Strategy: Flat
- Support: 1.1167, 1.1116, 1.1043
- Resistance: 1.1328, 1.1389, 1.1466
The US Dollar may have begun a significant downward reversal against its Canadian counterpart after prices overcome support guiding the uptrend since September. A daily close below channel support at 1.1167 exposes the 1.1116-42 area marked by a rising trend line set from July and the 38.2% Fibonacci retracement. Alternatively, a reversal above the 1.1300-28 zone (channel top, trend line support-turned-resistance) opens the door for a challenge of the 23.6% Fib expansion at 1.1389.
The overall USDCAD trend has pointed upward for over two years. As such, we will treat any oncoming weakness as an opportunity to enter long at a more attractive level rather than a short trade setup. In the meantime, we remain flat.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com