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USD/CAD: Prices At 5-Month High

Published 09/12/2014, 06:01 AM
Updated 07/09/2023, 06:31 AM
USD/CAD
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DX
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Talking Points
  • 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.

USD/CAD

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