To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/CAD Technical Strategy: Flat
- Support: 1.2328, 1.2181, 1.2035
- Resistance: 1.2564, 1.2646, 1.2827
The US Dollar continues to oscillate in a range above the 1.23 figure against its Canadian counterpart having begun a downward reversal as expected. Near-term support is in the 1.2328-81area, marked by the 38.2%Fibonacci retracement and the January 27 low, with a break below that on a daily closing basis exposing the 50% level at 1.2181. Alternatively, a turn above trend line resistance at 1.2564 opens the door for a challenge of the 23.6% Fib expansion at 1.2646.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
