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USD/CAD Technical Analysis: Loonie Still Treading Water

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Talking Points:

  • USD/CAD Technical Strategy: Flat

  • Support: 1.2381, 1.2187, 1.1997

  • Resistance: 1.2588, 1.2801, 1.2968

The US Dollar paused to digest losses after falling against its Canadian namesake as expected following the appearance of a Bearish Engulfing candlestick pattern. A daily close above the 14.6% Fibonacci expansion at 1.2588 exposes the 23.6% level at 1.2733. Alternatively, a push below the 1.2381-2421 area marked by the January 27 low and the 23.6% Fib retracement clears the way for a test of the 38.2% threshold at 1.2187.

An actionable trade setup is absent at this point, arguing against committing to a directional bias on long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.

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USD/CAD Technical Analysis: Loonie Still Treading Water
USD/CAD Technical Analysis: Loonie Still Treading Water

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


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