USD/CAD Technical Analysis: Rally Pauses to Digest Gains
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- USD/CAD Technical Strategy: Flat
- Support: 1.1957, 1.1895, 1.1795
- Resistance: 1.2056, 1.2137, 1.2218
The US Dollar stalled to consolidate gains below the 1.20 figure after launching aggressively higher anew against its Canadian counterpart. Near-term resistance is at 1.2056, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 1.2137. Alternatively, a turn back below the 23.6% Fib at 1.1957 clears the way for a test of the 14.6% expansion at 1.1895.
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.