USD/CAD Technical Analysis: Still Stalling at Range Floor
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- USD/CAD Technical Strategy: Flat
- Support: 1.2381, 1.2208, 1.2014
- Resistance: 1.2801, 1.2968, 1.3158
The US Dollar is flat-lining at familiar range support near the 1.24 figure 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 January 30 high at 1.2801 opens the door for a challenge of the 38.2% Fib expansion at 1.2968.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable 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.