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The US Dollar may be readying to launch a recovery against its Canadian counterpart after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0923, the 23.6% Fibonacci retracement, with a break higher on a daily closing basis exposing a falling trend line at 1.0954. Support is seen at a falling trend line set from mid-February, now at 1.0810.
Prices are too close to relevant resistance to justify a long position at current levels from a risk/reward perspective. We will stand aside for now, looking for a break upward or a corrective pullback to yield a buying opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com