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- 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.
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Daily Chart - Created Using FXCM Marketscope 2.0