USD/CAD Technical Analysis: Selloff Stalls at Trend Support
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- USD/CAD Technical Strategy: Flat
- Support: 1.1573, 1.1488, 1.1431
- Resistance: 1.1630, 1.1673, 1.1744
The US Dollar has stalled after declining to support marking the three-week uptrend against its Canadian counterpart. A daily close below rising trend line support at 1.1573 exposes the 38.2% Fibonacci retracement at 1.1488. Alternatively, a reversal above the 14.6% Fib expansion at 1.1630 clears the way for a test of the 23.6% threshold at 1.1673.
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.