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Talking Points:
- USD/CAD Technical Strategy: Flat
- Support: 1.2213, 1.2105, 1.1997
- Resistance: 1.2384, 1.2562, 1.2675
The US Dollar declined against its Canadian namesake as expected after prices put in a Bearish Engulfing candlestick pattern. Near-term support is at 1.2213, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 1.2105. Alternatively, a turn above the 1.2346-84 area (horizontal pivot, 23.6% Fib) clears the way for a test of the June 1 high at 1.2562.
An actionable trade setup is absent at this point, arguing against committing to a directional bias on long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com