USD/CAD Technical Analysis: Rally Slows Below 1.25 Figure
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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 slowed its advance against its Canadian namesake after testing resistance below the 1.25 figure. A daily close above the 61.8% Fibonacci retracement at 1.2487 targets the 76.4% level at 1.2621. Alternatively, a reversal below the 50% Fib at 1.2379 opens the door for a challenge of the 38.2% retracement at 1.2137.
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