USD/CAD Technical Analysis: Bounce Falters Above 1.23
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- USD/CAD Technical Strategy: Flat
- Support: 1.2198, 1.2131, 1.2021
- Resistance: 1.2307, 1.2397, 1.2504
The US Dollar continues to consolidate losses in a narrow range having turned lower against its Canadian namesake as expected. A daily close below the 14.6% Fibonacci expansion at 1.2198 exposes the 23.6% level at 1.2131. Alternatively, a rebound above the April 21 high at 1.2307 clears the way for a test of range support-turned-resistance at 1.2397.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com