USD/CAD Technical Analysis – Waiting for Long Trade Setup
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- USD/CAD Technical Strategy: Flat
- Support: 1.0800-13 (May 8 low, trend line)
- Resistance: 1.0910 (trend line), 1.1072 (23.6% Fib exp.)
The US Dollar may be readying to resuming its advance against its Canadian counterpart having put in a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0910, marked by a falling trend line set from the March 20 high. A break above this barrier aims for the 23.6% Fibonacci expansion at 1.1072. Support is seen in the 1.0800-13 area, marked by the May 8 low and a falling trend line set from mid-February.
Confirmation of upward resumption requires a daily close above trend line resistance. We will remain on the sidelines for the time being, waiting for that to materialize before entering a long position.
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.