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USD/CAD Technical Analysis ? Long Position Remains in Play

May 25, 2014

Ilya Spivak

Talking Points:

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

    The US Dollar is edging upward against its Canadian counterpart as expected after prices completed a bullish Piercing Line candlestick pattern. The bulls now aim to challenge the 14.6% Fibonacci expansion at 1.0973, with daily close above that exposing the 23.6% level at 1.1072. Falling trend line resistance-turned-support is now at 1.0849, with a reversal back below that eyeing the May 8 low at 1.0813.

    We bought USDCAD at 1.0907, initially aiming for1.0973. A stop-loss is set to trigger on a daily close above 1.0849. We will take profit on half of the position at 1.0973 and trail the stop-loss to the breakeven level.

    USD/CAD Technical Analysis - Long Position Remains in Play

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    Source: DailyFx

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