USD/CAD Technical Analysis: Eyeing Support Below 1.29
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- USD/CAD Technical Strategy: Long at 1.2649
- Support: 1.2872, 1.2729, 1.2614
- Resistance: 1.3047, 1.3127, 1.3258
The US Dollar corrected lower against its Canadian counterpart as expected but the dominant rising trend looks to be still intact. Near-term support is at 1.2872, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 1.2729. Alternatively, a push above the 14.6% Fib 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.
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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.