USD/CAD Candlestick Analysis: Top Confirmation Pending
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USD/CAD Strategy: Flat
Topping Pattern Awaits Follow-Through
Fib Support Above 1.24 Figure in Focus
The US Dollar appears to have carved out an interim top below the 1.28 figure against its Canadian counterpart. Prices snapped ten weeks of consecutive gains with the formation of a bearish Dark Cloud Cover candlestick pattern. Initial weekly support is at 1.2418, the 23.6% Fibonacci retracement, with a break below that targeting the 38.2% level at 1.1283. The first layer of resistance is at 1.2798, the January swing high.
The dominant long-term USD/CAD trend looks to be favoring the upside. As such, we will treat any on-coming losses as an opportunity to enter long at more compelling levels once the correction is exhausted.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com