USD/CAD Technical Analysis: Monthly Range Top Broken
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- USD/CAD Technical Strategy: Flat
- Support: 1.2635, 1.2354, 1.2239
- Resistance: 1.2801, 1.2968, 1.3158
The US Dollar resumed the push upward against its Canadian namesake, with prices clearing the top of the range capping gains for a month. A daily close above the 1.2733-1.2801 area marked by the 23.6% Fibonacci expansion and the January 30 high exposes the 38.2% level at 1.2968. Alternatively, a reversal below range top resistance-turned-support at 1.2635 opens the door for a challenge of the February 3 low at 1.2354.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com