USD/CAD Technical Analysis: August High in the Crosshairs

By DailyFx | Updated August 20, 2014 AAA

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Talking Points:

  • USD/CAD Technical Strategy: Long at 1.0811
  • Support: 1.0948, 1.0908, 1.0848
  • Resistance:1.0987-1.1001, 1.1044, 1.1087

The US Dollar looks to be resuming the advance against its Canadian namesake initiated with the appearance of a bullish Piercing Line candle pattern, as expected. A daily close above the 1.0987-1.1001 area, marked by the August 8 high and the 38.2% Fibonacci expansion, exposes the 50% level at 1.1044. Alternatively, a reversal below the 23.6% Fib expansion at 1.0948 opens the door for a rising trend line support set from early July, now at 1.0908.

We bought USDCAD at 1.0811 and subsequently booked profit on half of the position. The remainder of the trade remains open to capture any further upside momentum, with the stop-loss now adjusted to the breakeven level.

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USD/CAD Technical Analysis: August High in the Crosshairs

Daily Chart - Created Using FXCM Marketscope 2.0

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