To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/CAD Technical Strategy: Flat
- Support: 1.1220, 1.1166, 1.1078
- Resistance: 1.1308, 1.1379, 1.1450
The US Dollar resumed the advance against its Canadian counterpart, rising to the highest level in nearly seven months. A daily close above the 1.1278-1.1308 area marked by the March 20 high and the 38.2% Fibonacci expansion exposes the 50% level at 1.1379. Alternatively, a turn below the 23.6% Fib at 1.1220 opens the door for a challenge of the 14.6% expansion at 1.1166.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com