USD/CAD Technical Analysis: Topping Below 1.19 Figure?

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Talking Points:

• USD/CAD Technical Strategy: Flat
• Support: 1.1801, 1.1744, 1.1673
• Resistance: 1.1858, 1.1928, 1.2042

The US Dollar may be preparing to turn lower against its Canadian namesake after prices put in a Shooting Star candlestick. Near-term resistance is at 1.1858, the 61.8% Fibonacci expansion, with a break above that on a daily closing basis exposing the 76.4% level at 1.1928. Alternatively, a turn below the 50% Fib at 1.1801 clears the way for a test of the 38.2% expansion at 1.1744.

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