USD/CAD Technical Analysis: Double Top Needs Confirmation
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Flat
- Support: 1.2635, 1.2381, 1.2187
- Resistance: 1.2801, 1.2968, 1.3158
The US Dollar may be carving out a double top against its Canadian counterpart as negative RSI divergence hints at ebbing upside momentum. Near-term resistance-turned-support is at 1.2365, with a break below that on a daily closing basis exposing Triangle floor support at 1.2381. Alternatively, a push above the January 30 high at 1.2801 clears the way for a test of the 38.2% Fibonacci expansion at 1.2968.
RSI divergence notwithstanding, an actionable bearish reversal signal needed to trigger a short position is absent for now. On the other hand, prices are too close to resistance to justify entering long from a risk/reward perspective. 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.