USD/CAD Technical Analysis: Continuing to Hold Long Trade
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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0875, 1.0780, 1.0700
- Resistance: 1.0952, 1.1029, 1.1124
The US Dollar turned higher against its Canadian namesake as expected after prices produced a bullish Piercing Line candlestick pattern. A daily close above resistance at 1.0952, the 50% Fibonacci retracement, exposes the 61.8% level at 1.1029. Alternatively, a reversal beneath the 38.2% Fib at 1.0875 opens the door for a test of the 23.6% retracement at 1.0780.
We entered long USDCAD at 1.0811. The trade has now met its initial objective at 1.0875 and we’ve taken profit on half of our exposure. The rest will remain open to capture any further upside momentum with a stop-loss adjusted to the breakeven level.
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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.