USD/CAD Technical Analysis – Opting to Wait on New Longs
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- USD/CAD Technical Strategy: Flat
- Support: 1.0935 (May 2 low)
- Resistance: 1.0981 (23.6% Fib exp.), 1.1009 (38.2% Fib exp.)
The US Dollar moved higher against its Canadian counterpart as expected after forming a Bullish Engulfing candlestick pattern. Prices are range-bound below the 23.6% Fibonacci expansion at 1.0981, with a break above that on a daily closing basis exposing the 38.2% level at 1.1009. Near-term support is at 1.0935, the May 2 swing bottom.
We took profit on half of our long position from 1.0935 at 1.1017 and the rest was narrowly stopped out at breakeven last week. The aggressive drop on April 29 has given us some cause for concern about near-term upside continuity and we will opt not to re-enter the long position for the time being.
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.