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Talking Points:
- USD/CAD Technical Strategy: Flat
- Support: 1.1341, 1.1257, 1.1205
- Resistance: 1.1408, 1.1476, 1.1560
The US Dollar extended to a five-year high against its Canadian counterpart as prices attempt to clear a path above the 1.14 figure. A daily close above the 1.1348-1408 area marked by the October 15 high and the 50% Fibonacci expansion exposes the 61.8% level at 1.1476. Alternatively, a reversal below the 38.2% Fib at 1.1341 opens the door for a challenge of the 23.6% expansion at 1.1257.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com