USD/CAD Technical Analysis: Waiting for Greater Clarity

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

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

Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.0643, 1.0613, 1.0563
  • Resistance: 1.0700, 1.0749, 1.0790

The US Dollar is trying to build upward as expected against its Canadian counterpart after putting in a bullish Piercing Line candlestick pattern. Near-term resistance is in the 1.0694-1.0700 area, marked by a trend line set from September 2012 and the 23.6% Fibonacci retracement. A break above that on a daily closing basis exposes the 38.2% level at 1.0749. Alternatively, a reversal below the 14.6% Fib expansion at 1.0643 clears the way for a challenge of the 23.6% mark at 1.0613.

On one hand, a pullback over the past three days has put prices squarely at support without a defined bullish reversal, making us leery to enter long. On the other, the upside implications of the Piercing Line pattern remain intact. We will opt to stand aside for now until greater clarity emerges.

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

USD/CAD Technical Analysis: Waiting for Greater Clarity

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. USD/CAD Piercing Line Pattern Falls Flat As Intraday Whipsaws Endure
    Forex News

    USD/CAD Piercing Line Pattern Falls Flat As Intraday Whipsaws Endure

  2. USD/CAD Technical Analysis: Passing on Short Trade Setup
    Forex News

    USD/CAD Technical Analysis: Passing on Short Trade Setup

  3. USD/CAD Sloppy Uptrend Challenged; 1.1120 is Key
    Forex News

    USD/CAD Sloppy Uptrend Challenged; 1.1120 is Key

  4. USD/CAD Bullish Candlestick Pattern Awaiting Confirmation
    Forex News

    USD/CAD Bullish Candlestick Pattern Awaiting Confirmation

  5. USD/CAD Strengthened at Monday Session
    Investing

    USD/CAD Strengthened at Monday Session

Trading Center