USD/CAD Technical Analysis: Loonie Gains Most in 4 Years
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- USD/CAD Technical Strategy: Flat
- Support: 1.2381, 1.2208, 1.2014
- Resistance: 1.2635, 1.2801, 1.2929
The US Dollar turned lower against its Canadian namesake as expected, issuing the largest daily decline in four years. A daily close below the 1.2381-2448 area (January 27 low, 23.6% Fibonacci retracement) exposes the 38.2% level at 1.2208. Alternatively, a reversal above support-turned-resistance at 1.2635 opens the door for a challenge of a double top at 1.2801.
The long-term USDCAD uptrend favors the upside. With that in mind, we will look to any oncoming losses as a chance to enter long. In the meantime, we will remain on the sidelines until an actionable buying opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com