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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0899, 1.0845, 1.0802
- Resistance: 1.0989, 1.1042, 1.1085
The US Dollar continues to tread water against its Canadian namesake having turned higher as expected after producing a bullish Piercing Line candlestick pattern. A daily close above resistance at 1.0989, the 23.6% Fibonacci expansion, exposes the 38.2% level at 1.1042. Alternatively, a reversal beneath the 23.6% Fib retracement at 1.0899 opens the door for a test of the 38.2% threshold at 1.0845.
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
— Written by Ilya Spivak, Currency Strategist for DailyFX.com