USD/CAD Technical Analysis: Holding Long as Rally Resumes
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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0899, 1.0848, 1.0804
- Resistance: 1.0948, 1.0987-1.1001, 1.1044
The US Dollar appears set to renew a rally against its Canadian counterpart initiated with the formation for a bullish Piercing Line candlestick pattern, as expected. Near-term resistance is at 1.0948, the 23.6% Fibonacci expansion. A break above that on a daily closing basis exposes the 1.0987-1.1001 area, marked by the August 8 high and the 38.2% threshold. Alternatively, a turn below rising trend line support set from early July (1.0899) clears the way for a challenge of the 38.2% Fib retracement at 1.0848.
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 remains 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.