USD/CAD Technical Analysis: Resistance Now Above 1.15
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.1440, 1.1312, 1.1190
- Resistance: 1.1518, 1.1595, 1.1691
The US Dollar appears poised to continue higher after rising to the strongest level in five years against its Canadian namesake. Near-term resistance is at 1.1518, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 1.1518. Alternatively, a turn below the 38.2% Fib at 1.1440 opens the door for a challenge of 1.1312, the intersection of the December 1 low and a rising trend line set from late August.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.