USD/CAD Technical Analysis: Profits Booked on Long Trade

By DailyFx | August 27, 2014 AAA

DailyFX.com -

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

Talking Points:

  • USD/CAD Technical Strategy: Flat
  • Support: 1.0853, 1.0809, 1.0765
  • Resistance:1.0908, 1.0954, 1.0985-97

The Canadian Dollar launched an aggressive recovery against its US namesake as expected after showing a Dark Cloud Cover candle pattern coupled with negative RSI divergence. A daily close below the 38.2% Fibonacci retracement at 1.0853 exposes the 50% level at 1.0892. Alternatively, a turn back above the 23.6% Fib at 1.0908 opens the door for a challenge of rising trend line support-turned-resistance at 1.0954.

We bought USDCAD at 1.0811 and subsequently took profit on half ofour exposure upon reaching the first target at 1.0875. Today’s trend line break prompted us to book profit on the remainder of the trade. We will stand aside from here, waiting for another buying opportunity to emerge in line with the dominant long-term uptrend.

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

USD/CAD Technical Analysis: Profits Booked on Long Trade

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation
    Forex News

    AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

  2. USD/JPY bulls need to take a breath before a new attack at 110.00
    Forex News

    USD/JPY bulls need to take a breath before a new attack at 110.00

  3. Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low
    Forex News

    Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low

  4. GBP/USD nervous below 1.6200, waiting for data
    Forex News

    GBP/USD nervous below 1.6200, waiting for data

  5. Dollar’s Current Bull Leg Strongest since Rally Through Crisis
    Forex News

    Dollar’s Current Bull Leg Strongest since Rally Through Crisis

Trading Center