USD/CAD Technical Analysis: Buyers Set Sights on 1.28 Again
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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 bounced from familiar range support against its Canadian counterpart, with prices seemingly poised to challenge 1.28 anew. Near-term resistance is in the 1.2801-39 area (January 30 high, 23.6% Fibonacci expansion), with a break above that on a daily closing basis exposing the 38.2% level at 1.3079. Alternatively, a turn below resistance-turned-support at 1.2635 clears the way for a test of the 1.2381-2448 zone (range support, 23.6% Fib retracement).
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com