USD/CAD Technical Analysis: Uptrend Support Under Fire

By DailyFx | Updated August 26, 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: 1.0937, 1.0885, 1.0846
  • Resistance:1.0987-1.1001, 1.1044, 1.1087

The threat of a US Dollar pullback against its Canadian counterpart has re-emerged after prices completed a bearish Dark Cloud Cover candlestick pattern. Negative RSI divergence bolsters the case for a downside scenario.Near-term support is at 1.0946, 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 reversal above the 1.0985-1.1001 zone bracketed by the August 8 high and the 38.2% Fib expansion clears the way for a test 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: Uptrend Support Under Fire

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Investing

    USD/CAD Shows Strength on Friday

  2. Forex News

    USD/CAD Technical Analysis: Support Below 1.24 Holding

  3. Investing

    USD/CAD Buying Above 1.25 Handle

  4. Forex News

    USD/CAD Technical Analysis: Flat-Lining Near 1.24 Mark

  5. Forex News

    USD/CAD Technical Analysis: Still Stalling at Range Floor

Trading Center