USD/CAD Strategy: Long Position Entered Above 1.30
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- USD/CAD Technical Strategy: Long at 1.3010
- Prices Edge Higher After Producing Bullish Morning Star Candlestick Pattern
- Long Position Triggered Looking for Resumption of Long-Term Rising Trend
The US Dollar is edging higher having put in a bullish Piercing Line candlestick pattern, hinting a reversal higher against its Canadian counterpart may be in progress. The advance would mark resumption of the longer-term rising trend in play since July 2014.
The first layer of resistance is at 1.3125, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis opening the door for a test of the 23.6% level at 1.3263. Alternatively, a reversal back below the October 12 low at 1.2900 clears the way for a challenge of double top resistance-turned-support at 1.2798.
Technical positioning now looks attractive to try re-entering the ascent launched in July 2014 and we will trigger a long position, initially targeting 1.3125. A stop-loss will be activated on a daily close below the 1.2900 figure. We will take profit on half of the position and adjust the stop-loss to the breakeven level once the first objective is reached.
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