USD/CAD Technical Analysis: Candle Setup Hint at Pullback

By DailyFx | Updated August 07, 2014 AAA

DailyFX.com -

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

Talking Points:

  • USD/CAD Technical Strategy: Long at 1.0811
  • Support: 1.0899, 1.0845, 1.0802
  • Resistance: 1.0985, 1.1038, 1.1168

The US Dollar may be setting up for a pullback against its Canadian namesake after advancing as expected as prices show a Dark Cloud Cover candle pattern below the 1.10 figure. A daily close below the 23.6% Fibonacci retracement at 1.0899 exposes the 38.2% level at 1.0845. Alternatively, a reversal above the August 6 high at 1.0985 opens the door for a test of the 38.2% Fib expansion at 1.1038.

We entered long USDCAD at 1.0811. The trade has now met its initial objective at 1.0875 and we’ve taken profit on half of our exposure. The rest will remain open to capture any further upside momentum with a stop-loss adjusted to the breakeven level.

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

USD/CAD Technical Analysis: Candle Setup Hint at Pullback

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. USD/CAD Technical Analysis: Down Move Pauses Below 1.12
    Forex News

    USD/CAD Technical Analysis: Down Move Pauses Below 1.12

  2. USD/CAD Responds to Channel Support
    Forex News

    USD/CAD Responds to Channel Support

  3. USD/CAD Technical Analysis: Support Found Above 1.11
    Forex News

    USD/CAD Technical Analysis: Support Found Above 1.11

  4. USD/CAD Bearish Pattern Awaits Validation To Warn Of Deeper Pullback
    Forex News

    USD/CAD Bearish Pattern Awaits Validation To Warn Of Deeper Pullback

  5. USD/CAD Technical Analysis: Sellers Overcome 1.12 Figure
    Forex News

    USD/CAD Technical Analysis: Sellers Overcome 1.12 Figure

Trading Center