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: New Six-Week High Set

  2. Forex News

    USDCAD Scalps Face 1.25 Key Resistance Ahead of BoC, GDP

  3. Forex News

    USDOLLAR Index Bottom Looks Established by Now

  4. Forex News

    Trading Video: Not a Clean Break for EURUSD or EURJPY

  5. Forex News

    USD/CAD Technical Analysis: Foothold Secured Above 1.23

Trading Center