USD/CAD Technical Analysis: Upside Break May Falter
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- USD/CAD Technical Strategy: Flat
- Support: 1.1858, 1.1801, 1.1744
- Resistance: 1.1928, 1.2042, 1.2156
The US Dollar appears poised to extend above 1.19 above its Canadian counterpart but doubts about upside follow-through remain. Near-term resistance is at 1.1928, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis exposing the 100% level at 1.2042. Negative RSI divergence warns of ebbing upside momentum however. A turn back below the 61.8% Fib at 1.1858 clears the way for a test of the 50% expansion at 1.1801.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling 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.