USD/CAD Technical Analysis: Long Trade Nears First Target
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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0780, 1.0736, 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 1.0736.
We bought USDCAD at 1.0811, 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.