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- USD/CAD Technical Strategy: Long at 1.0935
- Support: 1.0857 (Apr 9 low)
- Resistance: 1.1017-54 (14.6% Fib exp., trend line), 1.1116 (23.6% Fib exp.)
The US Dollar continues to grind slowly higher having rebounded expected against its Canadian counterpart after forming a Bullish Engulfing candlestick pattern. Prices are testing resistance in the 1.1017-54 area, marked by the 14.6% Fibonacci expansion and a rising trend line set from mid-January. A break above this barrier on a daily closing basis initially targets the 23.6% Fib at 1.1116. Near-term support remains at 1.0857, the April 9 low.
We entered long USD/CAD at 1.0935 and booked profit on half of the position at 1.1017. The remainder of the trade remains open and we are looking for a break above near-term resistance to expose 1.1116 as the next upside objective. The stop-loss is now at the breakeven level (1.0935).
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com