USD/CAD Technical Analysis – Attempting to Resume Advance
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- USD/CAD Technical Strategy: Long at 1.0907
- Support: 1.0849 (May 19 low), 1.0823 (trend line), 1.0813 (May 8 low)
- Resistance: 1.0973 (14.6% Fib exp.), 1.1072 (23.6% Fib exp.)
The US Dollar is attempting to resume its advance against its Canadian namesake as expected after prices produced a Doji candlestick at falling trend line resistance-turned-support set from late March. Initial resistance is at 1.0973, the 14.6% Fibonacci expansion, with a break above that targeting the 23.6% level at 1.1072. Alternatively, a daily close below the May 19 low at 1.0849 clears the way for another test of the trend line (now at 1.0823), followed by the May 8 low at 1.0813.
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.