USD/CAD Technical Analysis: First Target Hit on Long Trade
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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 continued to push higher against its Canadian counterpart to probe at five-month resistance, as expected. A daily close above the 1.2770-97 area (100% Fibonacci expansion, January 30 high) exposes the 123.6% level at 1.2922. Alternatively, a turn below the 76.4% Fib at 1.2618 opens the door for a challenge of the 61.8% expansion at 1.2524.
We entered long USDCAD at 1.2649, initially targeting 1.2770. Prices have now met the initial target and we have taken profit on half of the position. The remainder of the trade will remain in play to capture any further gains with a stop-loss adjusted to the breakeven level.
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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.