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USD/CAD Technical Analysis ? Reversal Confirmation Pending

May 19, 2014

Ilya Spivak





Talking Points:



  • USD/CAD Technical Strategy: Flat
  • Support: 1.0800-13 (May 8 low, trend line)
  • Resistance: 1.0910 (trend line), 1.1072 (23.6% Fib exp.)



    The US Dollar may be gearing up for gains against its Canadian namesake after prices produced a bullish Piercing Line candlestick pattern. Initial resistance is at 1.0910, marked by a falling trend line set from the March 20 high, with a break above that exposing the 23.6% Fibonacci expansion at 1.1072. Support stands in the 1.0801-13 area, marked by the May 8 low and a falling trend line set from mid-February.



    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 above resistance to yield a buying opportunity.





    USD/CAD Technical Analysis - Reversal Confirmation Pending










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    Source: DailyFx