USD/CAD Technical Analysis: Holding Long as Rally Resumes
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0952, 1.0875, 1.0780
- Resistance: 1.1029, 1.1124, 1.1275
The US Dollar has resumed the advance against its Canadian namesake having turned higher as expected after producing a bullish Piercing Line candlestick pattern. A daily close above resistance at 1.1029, the 61.8% Fibonacci retracement, exposes the 76.4% level at 1.1124. Alternatively, a reversal beneath the 50% Fib at 1.0952 opens the door for a test of the 38.2% retracement at 1.0875.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.