USD/CAD Technical Analysis: Range Support Back in Focus
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- USD/CAD Technical Strategy: Flat
- Support: 1.2328, 1.2181, 1.2035
- Resistance: 1.2564, 1.2646, 1.2827
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, a turn above trend line resistance at 1.2564 opens the door for a challenge of the 23.6% Fib expansion at 1.2646.
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