USD/CAD Technical Analysis: Trying to Rebuild Advance
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- USD/CAD Technical Strategy: Flat
- Support: 1.1440, 1.1312, 1.1190
- Resistance: 1.1518, 1.1595, 1.1691
The US Dollar is attempting to rebuild upside momentum against its Canadian counterpart following a digestive pause. Near-term resistance is at 1.1518, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 1.1595. 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.
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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.