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USD/CAD Technical Analysis ? Candle Pattern Hints at Bounce

May 11, 2014

Ilya Spivak

Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.0810 (trend line)
  • Resistance: 1.0923 (23.6% Fib ret.), 1.0954 (trend line)

    The US Dollar may be readying to launch a recovery against its Canadian counterpart after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0923, the 23.6% Fibonacci retracement, with a break higher on a daily closing basis exposing a falling trend line at 1.0954. Support is seen at a falling trend line set from mid-February, now at 1.0810.

    Prices are too close to relevant resistance to justify a long position at current levels from a risk/reward perspective. We will stand aside for now, looking for a break upward or a corrective pullback to yield a buying opportunity.

    USD/CAD Technical Analysis - Candle Pattern Hints at Bounce

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    Source: DailyFx

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