USD/CAD Technical Analysis: Buyers Retake 1.22 Figure
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- USD/CAD Technical Strategy: Flat
- Support: 1.2137, 1.2044, 1.1946
- Resistance: 1.2271, 1.2379, 1.2487
The US Dollar advanced for a fourth consecutive day, reclaiming a foothold above the 1.22 figure against its Canadian counterpart. A daily close above the 38.2% Fibonacci retracementat 1.2271 exposes the 50% level at 1.2379. Alternatively, a reversal below the 23.6% Fib at 1.2137 opens the door for a challenge of trend line resistance-turned-support at 1.2044.
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.