USD/CAD Technical Analysis: 3-Week Uptrend Threatened
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- USD/CAD Technical Strategy: Flat
- Support: 1.1559, 1.1488, 1.1431
- Resistance: 1.1602, 1.1672, 1.1760
The Canadian Dollar is attempting a recovery against its US namesake, posting the largest daily advance in over two weeks. Near-term support is at 1.1559, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 1.1488. Alternatively, a turn above the 14.6% Fib at 1.1602 opens the door for a challenge of the December 15 high at 1.1672.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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.