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Talking Points:
- USD/CAD Technical Strategy: Flat
- Support: 1.1137-63 (23.6% Fib exp., Triangle top)
- Resistance: 1.1241 (50% Fib exp.), 1.1319 (61.8% Fib exp.)
The US Dollar broke higher against its Canadian counterpart as expected, completing a Triangle chart formation. Prices are now testing resistance at 1.1241, the 50% Fibonacci expansion, with a break above that aiming for the 61.8% level at 1.1319. Near-term support is in the 1.1137-63 area, marked by the 38.2% Fib and the Triangle top.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. Furthermore, a Shooting Star candlestick hints a pullback may be ahead. We will look for a correction to materialize to offer a more attractive buying opportunity.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com