USD/CAD Technical Analysis: Recovery Stalls Below 1.22
05 May 2015 03:13, GMTTo receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.