USD/CAD Technical Analysis: Recovery Stalls Below 1.22
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- USD/CAD Technical Strategy: Flat
- Support: 1.2076, 1.1996, 1.1866
- Resistance: 1.2196, 1.2286, 1.2397
The US Dollar is consolidating after moving higher as expected against its Canadian namesake following the appearance of a bullish Morning Star candlestick pattern. A daily close above horizontal pivot support-turned-resistance at 1.2196 exposes the 38.2% Fibonacci retracement at 1.2286. Alternatively, a turn below the 14.6% Fib expansion at 1.2076 clears the way for a test of the 23.6% level at 1.1996.
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