USD/CAD Technical Analysis: New Six-Week High Set
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- USD/CAD Technical Strategy: Flat
- Support: 1.2379, 1.2271, 1.2137
- Resistance: 1.2487, 1.2621, 1.2801
The US Dollar re-accelerated higher against its Canadian namesake, setting a new six-week high below the 1.25 figure. Near-term resistance is at 1.2487, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 76.4% level at 1.2621. Alternatively, a turn below the 50% Fib at 1.2379 clears the way for a test of the 38.2% retracement at 1.2137.
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