USD/CAD Technical Analysis: Long Position Now in Play
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- USD/CAD Technical Strategy: Long at 1.2649
- Support: 1.2618, 1.2524, 1.2449
- Resistance: 1.2770, 1.2922, 1.3016
The US Dollar is aiming for a barrier capping gains since January after securing a foothold above the 1.26 figure against its Canadian namesake. Near-term resistance is in the 1.2770-97 area (100% Fibonacci expansion, January 30 high), with a break above that on a daily closing basis exposing the 123.6% level at 1.2922. Alternatively, a reversal below the 76.4% Fib at 1.2618 clears the way for a test of the 61.8% expansion at 1.2524.
We will now enter long, initially targeting 1.2770. A stop-loss will be activated on a daily close below 1.2585. We will take profit on half of the position and move the stop to the breakeven level (1.2649) once the first objective is met.
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--- 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.