USD/CAD Technical Analysis: Prices Pause to Digest Losses
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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 paused to digest losses after testing the lowest level in three months against its Canadian counterpart having reversed lower as expected. Near-term support is at 1.2021, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.1933. Alternatively, a rebound above the 23.6% Fib at 1.2131 opens the door for a challenge of the 14.6% expansion at 1.2198.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com