USD/CAD Technical Analysis: Top in Place Below 1.26 Mark?
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- USD/CAD Technical Strategy: Flat
- Support: 1.2397, 1.2319, 1.2243
- Resistance: 1.2471, 1.2565, 1.2671
The US Dollar may have set a top against its Canadian namesake having produced a Bearish Engulfing candlestick pattern. Near-term support is in the 1.2397-1.2413 area (horizontal pivot, 23.6% Fibonacci retracement), with a break below that on a daily closing basis exposing the 38.2% level at 1.2319. Alternatively, a move above the 14.6% Fib at 1.2471 clears the way for a test of the June 1 high at 1.2565.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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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.