USD/CAD Technical Analysis: November Top Threatened
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- USD/CAD Technical Strategy: Flat
- Support: 1.1389, 1.1313, 1.1213
- Resistance: 1.1513, 1.1513, 1.1712
The US Dollar vaulted sharply higher against Canadian namesake, with prices now within striking distance of clearing the monthly high. Near-term resistance is in the 1.1466-1513 area, marked by the November 5 high and the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 1.1613. Alternatively, a reversal below the 23.6% Fib at 1.1389 clears the way for a test of the 14.6% expansion at 1.1313.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind we will remain flat for now.
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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.