USD/CAD Technical Analysis: Six-Week Uptrend Challenged
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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0896, 1.0848, 1.0804
- Resistance: 1.0948, 1.0987-1.1001, 1.1044
The US Dollar has corrected lower against its Canadian namesake having rallied as expected after producing a bullish Piercing Line candlestick pattern. A daily close below a rising trend line set from early July at 1.0896 exposes the 38.2% Fibonacci retracement at 1.0848. Alternatively, a reversal above the 23.6% Fib expansion at 1.0948 opens the door for a test of the 1.0987-1.1001 area, marked by the August 8 high and the 38.2% threshold.
We bought USDCAD at 1.0811 and subsequently booked profit on half of the position. The remainder of the trade remains open to capture any further upside momentum, with the stop-loss now 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.