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Talking Points:
- USD/CAD Technical Strategy: Flat
- Support: 1.0853, 1.0809, 1.0765
- Resistance:1.0954, 1.0998, 1.1043
The US Dollar continues to oscillate around the 1.09 figure against its Canadian counterpart as prices attempt to reconcile conflicting fundamental cues. A daily close below the 38.2% Fibonacci retracementat 1.0853 exposes the 50% level at 1.0808. Alternatively, a turn above resistance in the 1.0939-54 area clears the way for a test of the 50% Fib expansion at 1.0998.
Positioning is inconclusive at this point. While the longer-term rising trend established in September 2012 remains in place, an actionable long entry signal is absent. Furthermore, the proximity of the influential US Nonfarm Payrolls data release warns against reading too much into current positioning. On balance, we will continue to stand aside for now.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com