USD/CAD Technical Analysis: Ready to Push Above 1.19?
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- USD/CAD Technical Strategy: Flat
- Support: 1.1801, 1.1744, 1.1673
- Resistance: 1.1858, 1.1928, 1.2042
The US Dollar resumed the move higher against its Canadian counterpart, with prices threatening a breach of resistance that would clear a path above 1.19. A daily close above the 61.8% Fibonacci expansion at 1.1858 exposes the 76.4% level at 1.1928. Alternatively, a reversal below the 50% expansion at 1.1801 opens the door for a challenge of the 38.2% expansion at 1.1744.
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.