USD/CAD Technical Analysis: Rebound Stalls Below 1.23
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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 paused to digest gains after advancing to the highest level in a month against its Canadian namesake. Near-term resistance is at 1.2271, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 1.2379. Alternatively, a turn below the 23.6% Fib at 1.2137 clears the way for a test of trend line resistance-turned-support at 1.2057.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com