USD/CAD Bullish Objective Achieved, Look for Pullbacks for Long Entries
Chart prepared by Christopher Vecchio using Marketscope 2.0
FOREX Analysis: After breaking out of the descending trendline off of the October 2011 and June 2012 highs, the USDCAD has successfully retested and rallied from what is now support at C$1.0325/40. The rally was rejected channel resistance that has guided the pair since September 2012 (drawn off of September 2012 and January 2013 swing lows, parallel at the March 2013 high) at 1.0540/50. Similarly, this level coincided with the 100% Fibonacci extension of the May low to May high move, with the extension drawn to the June low.
FOREX Trading Strategy: The bullish objective given the 100% Fibonacci extension and channel resistance at 1.0540/50 was met, putting focus on looking to reenter longs on pullbacks. Given broad US Dollar strength, dips may be shallow. The first level that may induce buying is the 23.6% Fibonacci retracement of the May low/high at 1.0425/30.
--- Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail firstname.lastname@example.org
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list, please fill out this form
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.