USD/CAD Technical Analysis: Foothold Secured Above 1.23
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- USD/CAD Technical Strategy: Flat
- Support: 1.2271, 1.2137, 1.2055
- Resistance: 1.2379, 1.2487, 1.2621
The US Dollar continued to edge upward against its Canadian counterpart, securing a foothold above the 1.23 figure. 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.
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.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com