USD/CAD Technical Analysis: Trying to Resume Advance
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- USD/CAD Technical Strategy: Flat
- Support: 1.1592, 1.1559, 1.1488
- Resistance: 1.1630, 1.1673, 1.1744
The US Dollar is trying to regain momentum against its Canadian namesake and resume the uptrend set from late November. Near-term resistance is at 1.1630, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 1.1673. Alternatively, a turn below trend line support at 1.1592 opens the door for a challenge of the 23.6% Fib retracement at 1.1559.
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.