USD/CAD Technical Analysis: Longest Rally in Two Months
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- USD/CAD Technical Strategy: Flat
- Support: 1.1595, 1.1518, 1.1440
- Resistance: 1.1691, 1.1845, 1.2000
The US Dollar advanced for a fourth consecutive day against its Canadian counterpart, producing the longest winning streak in two months. A daily close above the 76.4% Fibonacci expansion at 1.1691 exposes the 100% level at 1.1845. Alternatively, a reversal below the 61.8% Fib at 1.1595 clears the way for a test of the 50% expansion at 1.1518.
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.