USD/CAD Technical Analysis: Candle Setup Hints at Topping
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- USD/CAD Technical Strategy: Flat
- Support: 1.2348, 1.2215, 1.2107
- Resistance: 1.2431, 1.2565, 1.2672
The US Dollar reversed downward against its Canadian counterpart, with the appearance of a Bearish Engulfing candlestick pattern hinting at deeper losses ahead. A daily close below the 23.6% Fibonacci expansionat 1.2348 exposes the 38.2% level at 1.2215. Alternatively, a move above the 14.6% Fib at 1.2431 opens the door for a challenge of the June 1 high at 1.2565.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.