USD/CAD Technical Analysis: Long Trade Remains in Play
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CAD Technical Strategy: Long at 1.2649
- Support: 1.2916, 1.2797, 1.2696
- Resistance: 1.3047, 1.3127, 1.3258
The US Dollar put in a Shooting Star candlestick coupled with negative RSI divergence, hinting a pullback against its Canadian counterpart may be ahead. Near-term support is at 1.2916, the July 21 low, with a break above that on a daily closing basis exposing resistance-turned-support at 1.2797. Alternatively, a push above the 14.6% Fibonacci expansion at 1.3047 clears the way for a test of the 23.6% level at 1.3127.
We bought USDCAD at 1.2649 and have since booked profit on half of the position. The rest of the trade will remain open to take advantage of any further gains ahead. The stop-loss has been moved to the breakeven level.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- 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.