USDCAD Price Pattern Analysis: flat with possibility to 23.6% Fib expansion at 1.1389

USDCAD Price Pattern Analysis: flat with possibility to 23.6% Fib expansion at 1.1389

28 November 2014, 09:11
Damiano Fabiański
0
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The US Dollar may have begun a significant downward reversal against its Canadian counterpart after prices overcome support guiding the uptrend since September. A daily close below channel support at 1.1167 exposes the 1.1116-42 area marked by a rising trend line set from July and the 38.2% Fibonacci retracement.


Resistance
 Support
1.13281.1167
1.1389
1.1116
1.1466
1.1043

Alternatively, a reversal above the 1.1300-28 zone (channel top, trend line support-turned-resistance) opens the door for a challenge of the 23.6% Fib expansion at 1.1389.


The overall USDCAD trend has pointed upward for over two years. As such, we will treat any oncoming weakness as an opportunity to enter long at a more attractive level rather than a short trade setup. In the meantime, we remain flat.

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