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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 be setting up for a pullback against its Canadian namesake after advancing as expected as prices show a Dark Cloud Cover candle pattern below the 1.10 figure. A daily close below the 23.6% Fibonacci retracement at 1.0899 exposes the 38.2% level at 1.0845. Alternatively, a reversal above the August 6 high at 1.0985 opens the door for a test of the 38.2% Fib expansion at 1.1038.
We entered long USDCAD at 1.0811. The trade has now met its initial objective at 1.0875 and we’ve taken profit on half of our exposure. The rest will remain open to capture any further upside momentum with a stop-loss 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