USD/CAD Technical Analysis: Prices Rise to 3-Month High
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- USD/CAD Technical Strategy: Flat
- Support: 1.2524, 1.2448, 1.2372
- Resistance: 1.2618, 1.2770, 1.2922
The US Dollar continues to push upward against its Canadian counterpart, hitting the highest level in almost three months. A daily close above the 76.4% Fibonacci expansion at 1.2618 exposes the 100% level at 1.2770. Alternatively, a turn below the 61.8% Fib at 1.2524 opens the door for a challenge of the 50% expansion at 1.2448.
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.