USD/CAD Technical Analysis – Long Trade Hits Stop-Loss
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- USD/CAD Technical Strategy: Flat
- Support: 1.0813-22 (May 8 low, 50% Fib exp.), 1.0803 (trend line from Feb)
- Resistance: 1.0850 (38.2% Fib exp.), 1.0880-85 (trend line from Apr, 23.6% Fib exp.)
The US Dollar is struggling to maintain momentum against its Canadian counterpart having bounced as expected following the formation of a Piercing Line candle pattern. Near-term support is in the 1.0813-22 area, marked by the intersection of the May 8 low and the 50% Fibonacci expansion. A break below that exposes a falling trend line set from mid-February, now at 1.0803. Alternatively, a reversal above the 38.2% level at 1.0850 targets the 1.0880-85 zone, the site of a downward-sloping barrier set from late April and the 23.6% Fib.
Our long USDCADposition was stopped out on yesterday’s close below 1.0849. An actionable re-entry signal is absent for the time being and we will stand aside, waiting for another trading opportunity to present itself.
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.