USD/CAD Technical Analysis: Carving Out a Double Top?
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- USD/CAD Technical Strategy: Flat
- Support: 1.1311, 1.1215, 1.1138
- Resistance: 1.1466, 1.1518, 1.1595
The US Dollar may be forming a double top against its Canadian counterpart marked by the appearance of a Bearish Engulfing candlestick pattern. A daily close below the 23.6% Fibonacci retracement at 1.1311 exposes the intersection of the 38.2% level and a rising trend line at 1.1215. Alternatively, a turn above the 1.1440-66 area marked by the 38.2% Fib expansion and the November 5 high opens the door for a challenge of the 50% threshold at 1.1518.
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
--- 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.