USD/CAD Technical Analysis: Loonie Falls for Fourth Day
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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 is working to rebuild its up move against its Canadian namesake, rising for a fourth consecutive day. 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.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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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.