Wednesday, February 5, 2014

Forex: USD/CAD Technical Analysis ? Support Sub-1.11 Held for Now




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Talking Points:



  • USD/CAD Technical Strategy: Flat


  • Support: 1.1067 (23.6% Fib ret.), 1.0970 (38.2% Fib ret.)


  • Resistance: 1.1223 (Jan 31 high)


The Canadian Dollar continued to grind higher for a fourth consecutive day against its US namesake but prices failed to breach support at 1.1067 (23.6% Fibonacci retracement) once again. A breach of this level on a closing basis initially exposes the 38.2% Fib at 1.0970. Near-term resistance remains at 1.1223, the January 31 high.



Risk/reward considerations argue against entering short with prices sitting squarely at support. Meanwhile, attempting to play the long side would imply taking as given an as-yet baseless assumption that support will hold. We will stand aside for now, waiting for a clear-cut, actionable signal to emerge before committing to a position.



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dailyclassics_usd-cad_body_Picture_11.png, Forex: USD/CAD Technical Analysis – Support Sub-1.11 Held for Now


Daily Chart – Created Using FXCM Marketscope 2.0



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





Forex: USD/CAD Technical Analysis ? Support Sub-1.11 Held for Now

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