USD/CAD Technical Analysis: Long Position Now in Play

By DailyFx | Updated July 27, 2014 AAA -

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

Talking Points:

  • USD/CAD Technical Strategy: Long at 1.0811
  • Support: 1.0780, 1.0746, 1.0699
  • Resistance: 1.0875, 1.0952, 1.1029

The US Dollar advanced as expected against its Canadian counterpart after putting in a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0875, the 38.2% Fibonacci retracement. A break above that on a daily closing basis initially exposes the 50% level at 1.0952. Alternatively, a turn below support at 1.0780, the 23.6% Fib, clears the way for a challenge of falling trend line resistance-turned-support at 1.0746.

The break above trend line resistance set from the March 20 swing top seems to offer the confirmation of an upward reversal cues we’ve been looking for on the weekly chart. We will now enter long, initially targeting 1.0875. A stop-loss will be triggered on a daily close below 1.0747. Profit on half of the position will be booked and the stop-loss moved to the breakeven level once the first objective is met.

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

USD/CAD Technical Analysis: Long Position Now in Play

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    USD/CAD Technical Analysis: Downward Momentum Resumes

  2. Forex News

    USD/CAD Has Eyes for 1.1930

  3. Forex News

    USD/CAD Technical Analysis: Bounce Falters Above 1.23

  4. Forex News

    USD/CAD Technical Analysis: Cautious Rebound Attempted

  5. Forex News

    USD/CAD Tests an Important Median Line

Trading Center