USD/CAD Technical Analysis: Rejected at Range Top Again
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- USD/CAD Technical Strategy: Flat
- Support: 1.2328, 1.2181, 1.2035
- Resistance: 1.2538, 1.2646, 1.2827
The US Dollar remains locked in a familiar range below the 1.27 figure against its Canadian counterpart after turning lower as expected. 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 resistance at 1.2538 clears the way for a test 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