USDCAD Technical Analysis - prices are too close to support to justify entering short
27 February 2015, 03:11
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The US Dollar continues to oscillate in a range above the 1.23 figure
against its Canadian counterpart having begun a downward reversal as
expected. Near-term support is in the 1.2328-81area, marked by the
38.2%Fibonacci retracement and the January 27 low, with a break below
that on a daily closing basis exposing the 50% level at 1.2181.
Alternatively, a turn above trend line resistance at 1.2564 opens the
door for a challenge of the 23.6% Fib expansion at 1.2646.
Prices are too close to support to justify entering short from a
risk/reward perspective. On the other hand, the absence of a defined
bullish reversal signal suggests that taking up the long side is
premature. With that in mind, we will remain flat for now.
| Resistance | Support |
|---|---|
| 1.2564 | 1.2328 |
| 1.2646 | 1.2181 |
| 1.2827 | 1.2035 |
