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USD/CAD Technical Analysis: Rebound Capped Below 1.24

USD/CAD Technical Analysis: Rebound Capped Below 1.24

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Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.2213, 1.2105, 1.1997
  • Resistance: 1.2384, 1.2562, 1.2673

The US Dollar declined against its Canadian namesake as expected after prices put in a Bearish Engulfing candlestick pattern. Near-term support is at 1.2213, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.2105. Alternatively, a turn above the 1.2346-84 area (horizontal pivot, 23.6% Fib) clears the way for a test of the June 1 high at 1.2562.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

--- 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.

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