USD/CAD Technical Analysis: Pullback to Yield Long Trade
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- USD/CAD Technical Strategy: Flat
- Support: 1.2208, 1.2014, 1.1820
- Resistance: 1.2448, 1.2620, 1.2801
The US Dollar declined as expected against its Canadian counterpart after putting in a Shooting Star candlestick at trend line resistance. A daily close below the 38.2% Fibonacci retracement at 1.2208 exposes the 50% level at 1.2014. Alternatively, a reversal above the 1.2381-2448 area (January 27 low, 23.6% Fib) opens the door for a challenge of trend line resistance at1.2620.
We see the long-term USDCAD trend as favoring the upside. With that in mind, we will treat on-coming weakness as corrective and look for opportunities to enter long once the down move appears exhausted. In the meantime, we will remain flat.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com