DailyFX.com -

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

Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.0669, 1.0620, 1.0570
  • Resistance: 1.0700, 1.0750, 1.0790

The US Dollar rebounded as expected against its Canadian namesake after prices completed a bullish Piercing Line candlestick pattern. A daily close above resistance in the 1.0686-1.0700 area – marked by a trend line set from September 2012 and the 23.6% Fibonacci retracement – exposes the 38.2% level at 1.0749. Alternatively, a turn back below the 14.6% level at 1.0669 opens the door for a test of the July 3 low at 1.0620.

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

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

USD/CAD Technical Analysis – Pivotal Trend Line Retested

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    USD/CAD Technical Analysis: Long Trade Remains Active

  2. Forex News

    USDCAD Posts 3rd Highest Volume Day in 2015 As Oil Plunges

  3. Forex News

    Dollar Demand Strong at Start of Critical Economic Data Week

  4. Forex News

    USD/CAD Technical Analysis: July Swing Top Under Pressure

  5. Investing

    USD/CAD: August 2015 Forecast

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!