USD/CAD Technical Analysis: Loonie Hits Three-Month High
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- USD/CAD Technical Strategy: Flat
- Support: 1.2021, 1.1933, 1.1845
- Resistance: 1.2131, 1.2198, 1.2307
The US Dollar continues to sink against its Canadian namesake having turned lower after topping below the 1.27 figure as expected. A daily close below the 38.2% Fibonacci expansion at 1.2021 exposes the 50% level at 1.1933. Alternatively, a rebound above the 23.6% Fib at 1.2131 clears the way for a test of 14.6% expansion at 1.2198.
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 an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com