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USDCAD and USDCHF Technical Outlook: 11/24

by on November 25, 2013 3:36 am BST
 

The USDCAD has been on a tear with the decline of the Canadian dollar. Price action is breaking through 1.0550 and on its way to retest  resistance at 1.0565. A break above resistance will allow a challenge of the 1.0607 highs, while support on a pullback will be found at 1.0540 and the Fibonacci fan trend line at 1.0530.

The Fibonacci fan gives another interpretation of support and resistance. The Canadian dollar has been weak due to the large downward movement in commodities. Recent economic data has been positive but trumped by data out of the United States.

A break above 1.0607 will lead up to a new high of 1.0650.

1D Chart of USDCAD

1D Chart of USDCAD

The USDCHF is a proxy of the dollar index and seen downside pressure with almost a side-by-side movement with the dollar index. The pair found support at .9063 and has additional support at .8990. The Fibonacci fan shows resistance at .9135. A break behind this level will allow price action to challenge the downward trend to .9195.

1D Chart of USDCHF

1D Chart of USDCHF

The dollar will have a heavy reporting week with pending home sales and building permits early this week; unemployment and core durable goods on Wednesday, and there will be a banking holiday on Thursday in the United States for Thanksgiving holiday. Canada reports GDP figures on Friday.