USD/CAD Technical Analysis: Long Position Now in Play
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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0780, 1.0746, 1.0699
- Resistance: 1.0875, 1.0952, 1.1029
The US Dollar advanced as expected against its Canadian counterpart after putting in a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0875, the 38.2% Fibonacci retracement. A break above that on a daily closing basis initially exposes the 50% level at 1.0952. Alternatively, a turn below support at 1.0780, the 23.6% Fib, clears the way for a challenge of falling trend line resistance-turned-support at 1.0746.
The break above trend line resistance set from the March 20 swing top seems to offer the confirmation of an upward reversal cues we’ve been looking for on the weekly chart. We will now enter long, initially targeting 1.0875. A stop-loss will be triggered on a daily close below 1.0747. Profit on half of the position will be booked and the stop-loss moved to the breakeven level once the first objective is met.
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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.