USD/CAD Technical Analysis: Loonie Hits New 6-Year Low
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- USD/CAD Technical Strategy: Flat
- Support: 1.2691, 1.2573, 1.2382
- Resistance: 1.2882, 1.3036, 1.3191
The US Dollar advanced for a third consecutive day against its Canadian counterpart, hitting the strongest level in six years. Near-term resistance is at 1.2882, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 1.3036. Alternatively, a reversal below the 23.6% Fib at 1.2691 opens the door for a challenge of the 14.6% expansion at 1.2573.
We are leery of chasing prices higher here as negative RSI divergence warns of ebbing upside momentum, warning a reversal downward may be brewing. With that in mind, we will stand aside, waiting for a more attractive trading 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.