Wednesday, July 30, 2014

USD/CAD Technical Analysis: Profit Booked on Half of Long




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Talking Points:



  • 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 advanced as expected against its Canadian counterpart after putting in a bullish Piercing Line candlestick pattern. A daily close above resistance at 1.0952, the 50% Fibonacci retracement, exposes the 61.8% level at 1.1029. Alternatively, a reversal beneath the 38.2% Fib at 1.0875 opens the door for a test of the 23.6% retracement at 1.0780.



We entered long USDCAD at 1.0811. The trade has now met its initial objective at 1.0875 ad 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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USD/CAD Technical Analysis: Profit Booked on Half of Long


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





USD/CAD Technical Analysis: Profit Booked on Half of Long

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