USD/CAD Technical Analysis: Treading Water Below 1.20
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- USD/CAD Technical Strategy: Flat
- Support: 1.1922, 1.1801, 1.1720
- Resistance: 1.1997, 1.2117, 1.2215
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 1.1997, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 1.2117. Alternatively, a turn back below the 14.6% Fib at 1.1922 clears the way for a test of the January 15 low at 1.1801. Negative RSI divergence warns a pullback may be in the cards.
An actionable trade setup is absent at this point, arguing against committing to a directional bias on long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.
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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.