Forex Analysis: USDCAD Classic Technical Report 11.08.2012

Prices put in a Bullish Engulfing candlestick pattern above rising trend line support set from mid-September (now at 0.9871), hinting a move higher is ahead. Initial resistance lines up at 0.9965, the 23.6% Fibonacci expansion. A break above that targets the 38.2% level at 1.0021. Overall positioning continues to favor a move to a measured upside target at 1.0140 after the pair completed an inverse Head and Shoulders bottom on October 19.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed