USDCAD: Trend-Defining Resistance in Play
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.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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