USD/CAD Technical Analysis: Rally Rejected at Resistance
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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 recoiled from resistance above the 1.12 figure against its Canadian counterpart, snapping a four-day winning streak. Near-term resistance is in the 1.2372-84 area (38.2% Fibonacci expansion, horizontal pivot), with a break above that on a daily closing basis exposing the 50% level at 1.2448. Alternatively, a move below the 23.6% Fib at 1.2279 clears the way for a test of the 14.6% expansion at 1.2221.
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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--- 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.