USD/CAD Technical Analysis – Looking for Gains Ahead
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- USD/CAD Technical Strategy: Long at 1.0907
- Support: 1.0872 (trend line), 1.0849 (May 19 low), 1.0813 (May 8 low)
- Resistance: 1.0973 (14.6% Fib exp.), 1.1072 (23.6% Fib exp.)
The US Dollar turned higher as expected against its Canadian namesake after prices put in a bullish Piercing Line candlestick pattern. A daily close above falling trend line resistance set from the March 20 high has exposed the 14.6% Fibonacci expansion at 1.0973, with a further push beyond that eyeing the 23.6% level at 1.1072. Alternatively, a move back below the trend line (now at 1.0872) eyes swing lows in the 1.0813-49 area.
We entered long USDCAD at 1.0907, targeting 1.0973 as the first objective. A stop-loss has been set to activate on a daily close below 1.0849. We will book half of the position and trail the stop-loss to breakevenonce the first target is hit.
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.