USD/CAD Technical Analysis: Trend Line Support in Focus
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- USD/CAD Technical Strategy: Flat
- Support: 1.2468, 1.2328, 1.2181
- Resistance: 1.2646, 1.2827, 1.2973
The US Dollar continues to struggle to find clear-cut direction cues against its Canadian namesake having topped and turned lower as expected. A daily close below trend line support at 1.2468 exposes the 1.2328-81area marked by the 38.2%Fibonacci retracement and the January 27 low. Alternatively, turn above the 23.6% Fib expansion at 1.2646clears the way for a test of the 1.2801-27 zone (January 30 high, 38.2% expansion).
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com