USD/CAD Technical Analysis: Range-Bound Trade Continues
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- USD/CAD Technical Strategy: Flat
- Support: 1.2328, 1.2181, 1.2035
- Resistance: 1.2526, 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 1.2526 opens the door for a challenge of the 23.6% Fib expansion at 1.2646.
Positioning is inconclusive at this point. On one hand, follow-through on the bearish reversal has failed to materialize. On the other, the Engulfing pattern setup has not been technically invalidated. We will stand aside for now, waiting for greater clarity to emerge before committing to a directional bias.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.