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USD/CAD Technical Analysis ? Rally Stalls Below 1.10 Mark

June 5, 2014

Ilya Spivak

Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.0856 (trend line), 1.0828 (double bottom?)
  • Resistance: 1.0923-41 (23.6% Fib ret., May 21 high), 1.0991 (38.2% Fib ret.)

    The US Dollar may be carving out a double bottom above the 1.08 figure in preparation for a turn higher against its Canadian namesake. Near-term resistance is in the 1.0923-41 area, marked by the 23.6% Fibonacci retracement and the May 21 high, with a break above that targeting the 38.2% level at 1.0991. Alternatively, a below support at 1.0881 - the 14.6% Fib - aims for falling trend line support-turned-resistance set from late April, now at 1.0850.

    Risk/reward considerations argue against entering long with prices sitting squarely at resistance. On the other hand, taking up the short side seems premature absent a defined bearish reversal signal. We will remain flat for now.

    USD/CAD Technical Analysis - Rally Stalls Below 1.10 Mark

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    Source: DailyFx

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