Strategy: Pending Long

USDCAD pushed higher after completing a Bullish Engulfing candlestick pattern, taking out support-turned-resistance at a rising trend line set from late February. The pair is now approaching major resistance in the 1.0014-1.0053 area, marked by a horizontal barrier in play since early November 2011 and a bias-defining falling trend line set from last year’s swing high. We will look for a daily close above this region as confirmation of a major bullish reversal to enter long.

USDCAD_Trend-Defining_Resistance_in_Play_body_Picture_5.png, USDCAD: Trend-Defining Resistance in Play

Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com