USD/CAD Technical Analysis: Familiar Range Remains in Play
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- USD/CAD Technical Strategy: Flat
- Support: 1.2328, 1.2181, 1.2035
- Resistance: 1.2646, 1.2827, 1.2973
The US Dollar continues to oscillate in a range above the 1.23 figure against its Canadian counterpart having begun a downward reversal as expected. Near-term support is in the 1.2328-81area, marked by the 38.2%Fibonacci retracement and the January 27 low, with a break below that on a daily closing basis exposing the 50% level at 1.2181. Alternatively, reversal above 1.2646 (trend line support-turned-resistance, 23.6% Fib expansion) opens the door for a challenge of the 1.2801-27 zone (January 30 high, 38.2% expansion).
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com