USD/CAD Technical Analysis: Aiming Above 1.27 Figure
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- USD/CAD Technical Strategy: Flat
- Support: 1.2381, 1.2187, 1.1997
- Resistance: 1.2588, 1.2801, 1.2968
The US Dollar appears set to continue higher against its Canadian counterpart after breaching the top week-old consolidation range. Near-term resistance is in the 1.2733-1.2801area, marked by the 23.6%Fibonacci expansion and the January 30 high, with a break above that on a daily closing basis exposing the 38.2% level at 1.2968. Alternatively, reversal back below the 14.6% Fib at 1.2588opens the door for a challenge of the 1.2381-2421 zone (January 27 low, 23.6% Fib retracement).
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com