USD/CAD Technical Analysis: Profits Booked on Long Trade
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- USD/CAD Technical Strategy: Flat
- Support: 1.0853, 1.0809, 1.0765
- Resistance:1.0908, 1.0954, 1.0985-97
The Canadian Dollar launched an aggressive recovery against its US namesake as expected after showing a Dark Cloud Cover candle pattern coupled with negative RSI divergence. A daily close below the 38.2% Fibonacci retracement at 1.0853 exposes the 50% level at 1.0892. Alternatively, a turn back above the 23.6% Fib at 1.0908 opens the door for a challenge of rising trend line support-turned-resistance at 1.0954.
We bought USDCAD at 1.0811 and subsequently took profit on half ofour exposure upon reaching the first target at 1.0875. Today’s trend line break prompted us to book profit on the remainder of the trade. We will stand aside from here, waiting for another buying opportunity to emerge in line with the dominant long-term uptrend.
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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.