The US Dollar looks poised to continue higher against its Canadian counterpart after prices broke above resistance marked by Augusts’ swing top. It now looks like the pair is in the process of resuming the latest leg of its multi-year rising trend established from mid-May.
Near-term resistance is at 1.3556, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis clears the way for a test of the 50% level at 1.3725. Alternatively, a reversal back below the 23.6% Fib at 1.3347 – now recast as support – opens the door for a challenge of the 14.6% level at 1.3218.
Positioning now seems attractive for a USDCAD trade and longs can be taken, initially targeting 1.3556. A stop-loss will be activated on a daily close below 1.3332. Look to book profit on half of the position and trail the stop-loss to the breakeven level once the first objective is hit.
Near-term resistance is at 1.3556, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis clears the way for a test of the 50% level at 1.3725. Alternatively, a reversal back below the 23.6% Fib at 1.3347 – now recast as support – opens the door for a challenge of the 14.6% level at 1.3218.
Positioning now seems attractive for a USDCAD trade and longs can be taken, initially targeting 1.3556. A stop-loss will be activated on a daily close below 1.3332. Look to book profit on half of the position and trail the stop-loss to the breakeven level once the first objective is hit.