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- USD/CAD Technical Strategy: Long at 1.0811
- Support: 1.0875, 1.0780, 1.0700
- Resistance: 1.0952, 1.1029, 1.1124
The US Dollar turned higher against its Canadian namesake as expected after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is at 1.0952, the 50% Fibonacci retracement. A break above that on a daily closing basis initially exposes the 61.8% level at 1.1029. Alternatively, a turn below support at 1.0875, the 38.2% Fib, clears the way for a challenge of the 23.6% retracement at 1.0780.
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