USD/CAD Technical Analysis – Slow Grind Higher Continues
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- USD/CAD Technical Strategy: Long at 1.0935
- Support: 1.0857 (Apr 9 low)
- Resistance: 1.1017-50 (14.6% Fib exp., trend line), 1.1116 (23.6% Fib exp.)
The US Dollar advanced against its Canadian namesake as expected after the currency pair completed a Bullish Engulfing candlestick pattern. Prices are now testing resistance in the 1.1017-50 area, marked by the 14.6% Fibonacci expansion and a previously broken rising trend line set from mid-January. A break above that on a daily closing basis initially targets the 23.6% Fib at 1.1116. Near-term support is at 1.0857, the April 9 low.
We entered long USD/CAD at 1.0935 and have now booked profit on half of the position at the initial target of 1.1017. The remainder of the position will stay open, looking for a break above resistance to expose 1.1116. The stop-loss has been trailed to the breakeven level (1.0935).
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com