USD/CAD Technical Analysis: Double Top Taking Shape?
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- 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.
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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.