Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
USD/CAD Technical Analysis: Begrudgingly Holding Long

USD/CAD Technical Analysis: Begrudgingly Holding Long

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

The US Dollar turned lower against its Canadian namesake after prices found resistance above the 1.33 figure. The move lower narrowly breached the 23.6% Fibonacci expansion at 1.3207, meeting the condition we set out for triggering the stop-loss on our long trade from 1.3247. However, after much consideration, we will opt to keep the trade in play and revise its parameters.

We generally consider failing to follow through on stop-loss parameters anathema to our trading philosophy. Excessive rigidity can sometimes prove as detrimental as a lack of discipline however, and we suspect this may be just such an instance.

Prices conspicuously fell short of finishing the day below the August 4 close, casting doubt on whether the August 24 upside breakout has been truly invalidated. Furthermore, our entry at 1.3247 and first objective at 1.3366 imply the lowest stop-loss level acceptable given a 1:1 risk/reward ratio – the minimum for our strategy – is at 1.3128. This gives us a bit of leeway to let the pair prove its bearish intentions if the upside breakout is indeed false. We will now place a hard stop at 1.3128 to force the 1:1 constraint on risk however.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.