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Talking Points:
- USD/CAD Technical Strategy: Long at 1.0935
- Support: 1.0857 (Apr 9 low)
- Resistance: 1.1017-36 (14.6% Fib exp., trend line), 1.1116 (23.6% Fib exp.)
The US Dollar began to recover as expected against its Canadian counterpart after prices put in a Bullish Engulfing candlestick pattern. Prices are approaching resistance in the 1.1017-36 area marked by the 14.6% Fibonacci and a rising trend line set from mid-January. A break above this barrier exposes the 23.6% Fib at 1.1116. Near-term support is at 1.0857, the April 9 low.
We entered a long position at 1.0935 last week and continue to hold the trade. A stop-loss has been set to trigger on a daily close below 1.0857. Profit on half of the position will be booked and the stop-loss trailed to breakeven at 1.1017.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com