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Talking Points:
- USD/CAD Technical Strategy: Long at 1.2649
- Support: 1.2618, 1.2524, 1.2449
- Resistance: 1.2770, 1.2922, 1.3016
The US Dollar advanced for a fourth consecutive day, securing a foothold above the 1.27 figure against its Canadian namesake. Near-term resistance is in the 1.2770-97 area (100% Fibonacci expansion, January 30 high), with a break above that on a daily closing basis exposing the 123.6% level at 1.2922. Alternatively, a reversal below the 76.4% Fib at 1.2618 clears the way for a test of the 61.8% expansion at 1.2524.
We bought USDCAD at 1.2649 and have since booked profit on half of the position. The rest of the trade will remain open to take advantage of any further gains ahead. The stop-loss has been moved to the breakeven level.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com