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: 1.0919, 1.0885, 1.0846
  • Resistance:1.0987-1.1001, 1.1044, 1.1087

The US Dollar may weaken against its Canadian counterpart before resuming a rally following the emergence of a Piercing Line candle pattern, as expected. The case for a downswing hinges on the appearance of a Bearish Engulfing formation coupled with negative RSI divergence. Near-term support is at 1.0919, marked by a rising trend line set from early July. A break below that on a daily closing basis exposes the August 18 close at 1.0885, followed by the 38.2% Fibonacci retracement at 1.0846. Alternatively, a turn above the 1.0985-1.1001 zone bracketed by the August 6 high and the 38.2% Fib expansion clears the way for a challenge of the 50% threshold at 1.1044.

We entered long USDCAD at 1.0811 and have since taken profit on half of our exposure. The rest remains 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: Holding Long Through Pullback

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    USD/CAD Technical Analysis: July Swing Top Under Pressure

  2. Investing

    USD/CAD: August 2015 Forecast

  3. Forex News

    Monetary Policy Speculation Continues Next Week With NFPs, RBA and BoE

  4. Forex News

    USDCAD Falls Even After Significant Miss in CAD GDP Data

  5. Forex News

    Breakout on Tap Next Week? USDOLLAR Index Eyes Flag Top

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!