News Column

USD/CAD Technical Analysis ? Long Position Now in Play

May 20, 2014

Ilya Spivak

Talking Points:

  • USD/CAD Technical Strategy: Long at 1.0907
  • Support: 1.0849 (May 19 low), 1.0813 (May 8 low)
  • Resistance: 1.0973 (14.6% Fib exp.), 1.1072 (23.6% Fib exp.)

    The US Dollar turned higher as expected against its Canadian namesake after prices put in a bullish Piercing Line candlestick pattern. A daily close above falling trend line resistance set from the March 20 high has exposed the 14.6% Fibonacci expansion at 1.0973, with a further push beyond that eyeing the 23.6% level at 1.1072. Alternatively, a move back below the trend line (now at 1.0888) eyes swing lows in the 1.0813-49 area.

    We will now enter long, aiming for 1.0973 as an initial objective. A stop-loss will be activated on a daily close above 1.0849. We will take profit on half of the trade at the first target and trail the stop-loss to the breakeven level.

    USD/CAD Technical Analysis - Long Position Now in Play

  • For more stories on investments and markets, please see HispanicBusiness' Finance Channel

    Source: DailyFx

    Story Tools
 Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters