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USD/CAD Technical Analysis: Double Top Taking Shape?

USD/CAD Technical Analysis: Double Top Taking Shape?

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Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.2635, 1.2381, 1.2187
  • Resistance: 1.2801, 1.2968, 1.3158

The US Dollar may be preparing to turn lower against its Canadian namesake after prices put in a Bearish Engulfing candlestick pattern. A daily close below range top resistance-turned-support at 1.2365 exposes a Triangle floor support at 1.2381. Alternatively, a reversal above January 30 high at 1.2801 opens the door for a challenge of the 38.2% Fibonacci expansion at 1.2968.

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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

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.

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