DailyFX.com -

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

Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.0837 (channel floor), 1.0813 (May 8 low), 1.0782 (38.2% Fib ret.)
  • Resistance: 1.0860 (trend line), 1.0923 (23.6% Fib exp.)

The US Dollar has found interim support above the 1.08 figure against its Canadian counterpart but the near-term trend bias remains clouded in uncertainty. Price action seen after the pair set its latest swing low on May 8 may be carving out a rising channel or a continuation Flag pattern. The former carries bullish implications while the latter argues for the downside, with confirmation on which of these two alternatives is more likely absent for the time being.

A daily close above falling trend line resistance at 1.0860 targets the 23.6% Fibonacci expansion at 1.0923, followed by the channel/flag top at 1.0945. Alternatively, a move below the formation’s floor at 1.0837 targets the May 8 low at 1.0813, with the 38.2% Fib expansion at 1.0782 exposed thereafter.

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

USD/CAD Technical Analysis – Weighing Conflicting Cues

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: Pullback Stalls at Support

  2. Forex News

    Fed Doesn’t Relieve Anxiety, GDP Will Take Shot at Dollar and Equities

  3. Forex News

    USDCAD Plummets Following US Oil Inventories Data

  4. Forex News

    US Dollar Risks to the Downside on a Break of these Key Levels

  5. Forex News

    Preview for FOMC Meeting and Trade Setups for USD-pairs

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!