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Forex: USD/CAD Technical Analysis – Long Trade Triggered Sub-1.12

Forex: USD/CAD Technical Analysis – Long Trade Triggered Sub-1.12

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • USD/CAD Technical Strategy: Long at 1.1166
  • Support: 1.1131-63 (38.2% Fib exp., Triangle top)
  • Resistance: 1.1241 (50% Fib exp.), 1.1319 (61.8% Fib exp.)

The US Dollar pulled back as expected against its Canadian counterpart having secured a projected upside breakout out of a bullish Triangle chart pattern. Prices are now testing support at 1.1163, the 38.2% Fibonacci expansion, with a break below that eyeing the Triangle top at 1.1131. Near-term resistance is at 1.1241, the 50% level. A reversal above that initially exposes the 61.8% Fib at 1.1319.

The downward retracement over the past three sessions has improved risk/reward parameters sufficiently to attempt a long position from here. We will initially target 1.1241 and set a stop-loss to trigger on a daily close below 1.1092. Profit on half of the position will be booked and the stop-loss moved to breakeven on meeting the first objective.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

dailyclassics_usd-cad_body_Picture_12.png, Forex: USD/CAD Technical Analysis – Long Trade Triggered Sub-1.12

Daily Chart - Created Using FXCM Marketscope 2.0

--- 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.

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