USD/CAD Technical Analysis: Pullback Signaled Below 1.10

By DailyFx | Updated August 06, 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 correct lower against its Canadian counterpart after rallying as expected following the formation of a bullish Piercing Line candle pattern. A Dark Cloud Cover setup below the 1.10 warns of a pullback, with near-term support seen at 1.0899 marked by the 23.6% Fibonacci retracement. A break below that on a daily closing basis exposes the 38.2% level at 1.0845. Alternatively, a turn above the August 6 high at 1.0985 clears the way for a challenge of the 38.2% Fib expansion at 1.1038.

We bought USDCAD at 1.0811 and subsequently booked profit on half of the position. The remainder of the trade will remain open to capture any further upside momentum, with the stop-loss now adjusted to the breakeven level.

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

USD/CAD Technical Analysis: Pullback Signaled Below 1.10

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. USD/CAD Technical Analysis: Support Found Above 1.11
    Forex News

    USD/CAD Technical Analysis: Support Found Above 1.11

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

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

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

    USD/CAD Technical Analysis: Sellers Overcome 1.12 Figure

  4. USD/CAD Channel Support is Slightly Lower
    Forex News

    USD/CAD Channel Support is Slightly Lower

  5. USD/CAD Bulls Regain Their Grip Near Critical 1.1220 Floor
    Forex News

    USD/CAD Bulls Regain Their Grip Near Critical 1.1220 Floor

Trading Center