USD/CAD Technical Analysis: Opting Against Entering Long
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- USD/CAD Technical Strategy: Flat
- Support: 1.2021, 1.1933, 1.1845
- Resistance: 1.2156, 1.2286, 1.2397
The US Dollar put in a bullish Morning Star candlestick pattern, hinting a move higher against its Canadian namesake may be ahead. A daily close above the 23.6% Fibonacci retracement at 1.2156 exposes the 38.2% level at 1.2286. Alternatively, a reversal below the 38.2% Fib expansion at 1.2021 clears the way or a test of the 50% threshold at 1.1933.
While we continue to see the long-term USDCAD trend as favoring the upside, we will tactically opt against entering long at this stage. Our medium-term outlook envisions a broad downward correction in the US Dollar before the structural advance resumes, making us leery of buying the benchmark currency. As such, we will continue to stand aside for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.