USD/CAD Technical Analysis: December Top in the Crosshairs
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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 has moved to challenge January’s swing high against its Canadian counterpart near the 1.28 figure. Near-term resistance is in the 1.2733-1.2801 area, marked by the 23.6% Fibonacci expansion and the January 30 high, with a break above that on a daily closing basis exposing the 38.2% level at 1.2968. Alternatively, a turn below range top resistance-turned-support at 1.2635 clears the way for a test of the February 3 low at 1.2354.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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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.