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 Piercing Line Pattern Falls Flat As Intraday Whipsaws Endure
    Forex News

    USD/CAD Piercing Line Pattern Falls Flat As Intraday Whipsaws Endure

  2. USD/CAD Technical Analysis: Passing on Short Trade Setup
    Forex News

    USD/CAD Technical Analysis: Passing on Short Trade Setup

  3. USD/CAD Sloppy Uptrend Challenged; 1.1120 is Key
    Forex News

    USD/CAD Sloppy Uptrend Challenged; 1.1120 is Key

  4. USD/CAD Bullish Candlestick Pattern Awaiting Confirmation
    Forex News

    USD/CAD Bullish Candlestick Pattern Awaiting Confirmation

  5. USD/CAD Strengthened at Monday Session
    Investing

    USD/CAD Strengthened at Monday Session

Trading Center