USD/CAD Candlestick Analysis: Pullback to Yield Long Trade
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- USD/CAD Strategy: Flat
- Top May Be in Place Below 1.28 Figure
- Pullback to be Seen as Buying Opportunity
The US Dollar may have established a top against its Canadian namesake having put in a bearish Dark Cloud Cover candlestick pattern below the 1.28 figure. The first layer of weekly support is at 1.2418, the 23.6% Fibonacci retracement, with a break below that exposing the 38.2% level at 1.1283. Resistance is at 1.2798, the January swing high.
The overall USD/CAD trend continues to favor the upside. With that in mind, we will look to any on-coming weakness as an opportunity to establish a long position at more attractive levels once the downswing is exhausted.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.