USD/CAD Technical Analysis: Loonie Taps Five-Year Low
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- USD/CAD Technical Strategy: Flat
- Support: 1.1312, 1.1260, 1.1190
- Resistance: 1.1440, 1.1518, 1.1595
The US Dollar is attempting to rebuild upward momentum against its Canadian counterpart, with prices touching the highest level in five years. A daily close above the 38.2% Fibonacci expansion at 1.1440 exposes the 50% level at 1.1518. Alternatively, a turn below the December 1 low at 1.1312 clears the way for a test of rising trend line support at 1.1260.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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
--- 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.