USD/CAD Technical Analysis: Eyeing 2-Month Range Floor
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- USD/CAD Technical Strategy: Flat
- Support: 1.2635, 1.2381, 1.2208
- Resistance: 1.2839, 1.3079, 1.3273
The US Dollar is edging downward to challenge the bottom of a long-standing range against its Canadian counterpart. Near-term support is in the 1.2381-2448 area (January 27 low, 23.6% Fibonacci retracement), with a break below that on a daily closing basis exposing the 38.2% level at 1.2208. Alternatively, a turn above the 1.2801-39 zone (January 30 high, 23.6% Fib expansion) clears the way for a test of the 38.2% threshold at 1.3079.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.