USD/CAD Technical Analysis: August High in the Crosshairs
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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0948, 1.0908, 1.0848
- Resistance:1.0987-1.1001, 1.1044, 1.1087
The US Dollar looks to be resuming the advance against its Canadian namesake initiated with the appearance of a bullish Piercing Line candle pattern, as expected. A daily close above the 1.0987-1.1001 area, marked by the August 8 high and the 38.2% Fibonacci expansion, exposes the 50% level at 1.1044. Alternatively, a reversal below the 23.6% Fib expansion at 1.0948 opens the door for a rising trend line support set from early July, now at 1.0908.
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.