USD/CAD Technical Analysis: Eyeing Resistance Below 1.24
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- USD/CAD Technical Strategy: Flat
- Support: 1.2279, 1.2221, 1.2127
- Resistance: 1.2384, 1.2448, 1.2524
The US Dollar turned lower against its Canadian counterpart as expected after producing a Bearish Engulfing candlestick pattern. A daily close above the 1.2372-84 area (38.2% Fibonacci expansion, horizontal pivot) exposes the 50% level at 1.2448. Alternatively, a turn below the 23.6% Fib at 1.2279 opens the door for a challenge of the 14.6% expansion at 1.2221.
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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--- 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.