USD/CAD Technical Analysis: Long Trade in Play Sub-1.10
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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0928, 1.0885, 1.0846
- Resistance:1.0987-1.1001, 1.1044, 1.1087
The US Dollar may be carving out a double top against its Canadian namesake after launching higher as expected. The case for a downside scenario is made by the presence of a Bearish Engulfing candle pattern coupled with negative RSI divergence. A daily close below a rising trend line set from early July (now at 1.0928) exposes the August 18 close at 1.0885, followed by the 38.2% Fibonacci retracement at 1.0846. Alternatively, a turn above the 1.0985-1.1001 area marked by the August 6 high and the 38.2% Fib expansion clears the way for a challenge of the 50% threshold at 1.1044.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com