USD/CAD Technical Analysis: Treading Water Near 1.22
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- USD/CAD Technical Strategy: Flat
- Support: 1.2209, 1.2015, 1.1821
- Resistance: 1.2354, 1.2456, 1.2585
The US Dollar moved lower against its Canadian namesake as expected after prices produced a Shooting Star candlestick at trend line resistance. A conclusive break below the 38.2% Fibonacci retracement at 1.2209 exposes the 50% level at 1.2015. Alternatively, a rebound above the February 3 low at 1.2354 clears the way for a test of trend line support-turned-resistance at 1.2456.
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