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Forex: USD/CAD Technical Analysis ? Support Sub-1.11 Under Pressure

February 3, 2014

Ilya Spivak

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 has launched its most significant advance in over a month, with prices testing support at 1.1067 (marked by the 23.6% Fibonacci retracement). Breaking below this barrier on a daily closing basis initially exposes the 38.2% level at 1.0970. Near-term resistance is 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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Source: DailyFx

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