USDCAD: Buyers Aim to Challenge Parity Again

Strategy: Flat

USDCAD pushed higher as expected after putting in a bullish Piercing Line candlestick pattern above support at 0.9854, the March 1 bottom, taking out resistance at the underside of a falling channel set from early June. Buyers now aim to challenge the 23.6% Fibonacci retracement at 0.9983, a barrier reinforced by the psychologically significant parity level. A break above this juncture targets the 38.2% Fib at 1.0071. Channel support is now at 0.9901, with push back below that exposing 0.9854 anew. Risk/reward considerations argue against entering a trade at current levels and we will stand aside for now.

Daily Chart - Created Using FXCM Marketscope 2.0

Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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