Wednesday, February 26, 2014

Forex: USD/CAD Technical Analysis ? Choppy Above 1.10 Figure




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Talking Points:



  • USD/CAD Technical Strategy: Flat


  • Support: 1.1051 (50% Fib ret.), 1.1018 (61.8% Fib ret.)


  • Resistance: 1.1085 (38.2% Fib ret.), 1.1126 (23.6% Fib ret.)


Prices declined expected after showing a Shooting Star candle. The pair found interim support at 1.1051, the 50% Fibonacci retracement, and is attempting to recover above the 38.2% level at 1.1085. A daily close above this barrier exposes the 23.6% Fib at 1.1126. Alternatively, a reversal below support targets the 61.8% retracement at 1.1018.



Choppy positioning around near-term technical levels warns against taking a position on risk/reward grounds. Furthermore, confirmation of an upside breakout is absent for the time being. We will remain on the sidelines for the time being, waiting for a more attractive setup to emerge.



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dailyclassics_usd-cad_body_Picture_12.png, Forex: USD/CAD Technical Analysis – Choppy Above 1.10 Figure


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





Forex: USD/CAD Technical Analysis ? Choppy Above 1.10 Figure

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