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- USD/CAD Technical Strategy: Flat
- Support: 1.0985, 1.0934, 1.0859
- Resistance: 1.1043, 1.1085, 1.1138
The US Dollar renewed the upward march against its Canadian counterpart, rising to the highest level in over five months. Near-term resistance is at 1.1041, the 50% Fibonacci expansion, with a break above that ton a daily closing basis exposing the 61.8% level at 1.1085. Alternatively, a reversal below the 1.0985-98 area marked by the August 6 high and the 38.2% Fib opens the door for a challenge of resistance-turned-support at 1.0934.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com