USD/CAD Technical Analysis: Probing Above 1.20 Anew
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- USD/CAD Technical Strategy: Flat
- Support: 1.1953, 1.1823, 1.1717
- Resistance: 1.2061, 1.2137, 1.2271
The US Dollar is attempting to reclaim a foothold above the 1.20 figure against its Canadian counterpart after rebounding at range support. A daily close above trend line resistance at 1.2061 exposes the 23.6% Fibonacci retracement at 1.2137. Alternatively, a reversal below the 23.6% Fib expansion at 1.1953 clears the way for a test of the 38.2% level 1.1823.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.