DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.0828-50 (23.6% Fib exp., double bottom?), 1.0782 (38.2% Fib exp.)
  • Resistance: 1.0892 (14.6% Fib exp.), 1.0941 (May 21 high)

The US Dollar declined for a fourth consecutive day against its Canadian counterpart after finding resistance below the 1.10 figure. Prices are testing the 1.0828-50 zone marked by the 23.6% Fibonacci expansion and a would-be double bottom. A daily close below this barrier initially targets the 38.2% level at 1.0782. Alternatively, a turn above the 14.6% Fib at 1.0892 clears the way for a test of 1.0941, the May 21 high.

Risk/reward considerations argue against entering short with prices sitting just above support. On the other hand, taking up the long side is premature absent a defined bullish reversal signal. We will remain flat for now.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

USD/CAD Technical Analysis – All Eyes on Double Bottom

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    USD/CAD Technical Analysis: June Top in the Crosshairs

  2. Forex News

    USD/CAD Ends June Near Several Trendlines

  3. Forex News

    US Dollar May Break to Further Lows if it Fails at Key Support

  4. Forex News

    Webinar: Greece Charges Euro Gap & Snapback- USDJPY Remains at Risk

  5. Forex News

    USD/CAD Technical Analysis: Rally Rejected at Resistance

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!