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Talking Points:
- USD/CAD Technical Strategy: Flat
- Support: 1.1204, 1.1092, 1.1002
- Resistance: 1.1329, 1.1406, 1.1483
The US Dollar may be forming a top against its Canadian namesake as negative RSI divergence points to fading upward momentum. A daily close below the intersection of a rising channel floor and the 23.6% Fibonacci retracement at 1.1204 exposes the 1.1092-98 zone (38.2% level, September 15 high). Alternatively, a push above the 38.2% Fib expansion at 1.1329 opens the door for a challenge of 1.1406, the intersection of the 23.6% threshold and the channel top.
Positioning is inconclusive. RSI divergence is not an actionable signal by itself and confirmation is needed via invalidation of the uptrend from September’s lows. With that in mind, we will remain flat for now until greater clarity emerges.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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