USD/CAD Technical Analysis: Downturn Hinted Sub-1.25
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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 may be readying to turn lower against its Canadian counterpart after prices put in a Shooting Star candlestick. Near-term support is at 1.2379, the 50% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 1.2271. Alternatively, a turn above the 61.8% Fib at 1.2487 clears the way for a test of the 76.4% retracement at 1.2621.
A Shooting Star candle is indicative of indecision and does not amount to a sufficient-enough reversal signal in its own right without further confirmation. With that in mind, we will remain on the sidelines for now and wait for a more actionable setup to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com