USD/CAD Technical Analysis: Support Now Below 1.24 Mark
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- USD/CAD Technical Strategy: Flat
- Support: 1.2319, 1.2243, 1.2167
- Resistance: 1.2413, 1.2565, 1.2676
The US Dollar declined against its Canadian namesake as expected after prices put in a Bearish Engulfing candlestick pattern. Near-term support is at 1.2319, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 1.2243. Alternatively, a reversal back above the 1.2397-1.2413 area (horizontal pivot, 23.6% Fib) clears the way for a test of the June 1 high at 1.2565.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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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.