USD/CAD Technical Analysis: Range Floor Under Pressure
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- USD/CAD Technical Strategy: Flat
- Support: 1.1953, 1.1823, 1.1717
- Resistance: 1.2034, 1.2095, 1.2165
The US Dollar descended to challenge the bottom of its now-familiar range below the 1.20 figure against its Canadian namesake. A daily close below the 23.6% Fibonacci expansion at 1.1953 exposes the 38.2% level at 1.1823. Alternatively, a reversal above the 14.6% Fib at 1.2034 clears the way for a test of trend line resistance at 1.2095.
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