USD/CAD Technical Analysis: Aiming Above 1.24 Figure

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Talking Points:

• USD/CAD Technical Strategy: Flat
• Support: 1.2312, 1.2215, 1.2117
• Resistance: 1.2433, 1.2628, 1.2823

The US Dollar soared to the highest level in nearly six years against its Canadian namesake after a surprise rate cut from the BOC. A daily close above the 76.4% Fibonacci expansion at 1.2433 exposes the 100% level at 1.2628. Alternatively, a turn below the 61.8% Fib at 1.2312 clears the way for a challenge of the 50% expansion at 1.2215.

While a long position seems tempting from a purely technical perspective, we are leery of chasing prices higher at this point. With that in mind we will continue to stand aside, waiting for a more attractive opportunity to present itself.

NOTE: FXCM Inc, Parent Company of DailyFX, will raise margin requirements given volatility risk

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com