USD/CAD Technical Analysis: Failing to Hold Above 1.31 Mark
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- USD/CAD Technical Strategy: Flat
- Support: 1.2956, 1.2798, 1.2670
- Resistance: 1.3109, 1.3207, 1.3366
The US Dollar is treading water near the 1.30 figure having corrected downward against its Canadian counterpart. Near-term support is at 1.2956, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 1.2798. Alternatively, a push above the 14.6% Fib expansion at 1.3109 clears the way for a test of the 23.6% threshold at 1.3207.
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.