USD/CAD Technical Analysis: Digesting Losses Above 1.23
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- USD/CAD Technical Strategy: Flat
- Support: 1.2328, 1.2181, 1.2035
- Resistance: 1.2593, 1.2646, 1.2827
The US Dollar is consolidating losses after turning lower against its Canadian counterpart as expected after putting in a Bearish Engulfing candlestick pattern. A daily close below the 1.2328-81area marked by the 38.2%Fibonacci retracement and the January 27 low exposes the 50% level at 1.2181. Alternatively, a turn above trend line support-turned-resistance at 1.2593 clears the way for a test of the 23.6% Fib expansion at 1.2646.
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