USD/CAD Technical Analysis: Positioning Hints at Topping
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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 carving out a top against its Canadian namesake having produced a Shooting Star candlestick. A daily close below the 50% Fibonacci retracementat 1.2379 exposes the 38.2% level at 1.2271. Alternatively, a move above the 61.8% Fib at 1.2487 opens the door for a challenge of the 76.4% retracement at 1.2621.
A Shooting Star speaks to indecision and requires further confirmation before amounting to an actionable reversal signal. As such, we will continue to stand aside for now until a more actionable trading opportunity emerges.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.