USD/CAD—Looks like a Top is in Place below 1.28

USD/CAD (1.2447)

• Dark Cloud Cover indicates possible top under 1.28
• The Dollar could fall further breaking below near term support

Trade Strategy: Flat looking to go long after fall

The USD/CAD has been moving higher. Looking at the below daily MT 4 chart, the US Dollar looks to have found a top just below the key pivot at 1.28. After rising for 10 weeks in row, a Dark Cloud Candlestick formed indicating losses ahead along with an interim top in place.

There has been little if no follow through, however a daily close the technical support of 1.2480 will bring more losses for the Dollar. There is another support level lining up at 1.2285. A break below this level targets the technical support at 1.1965.

The USD/CAD has been on a long term bullish trend since mid-2012. Long term charts suggest this uptrend began around the middle of September. At this point, any losses will provide an opportunity for a long US Dollar trade. It looks like this current correction will end soon, setting up a better long trade over a short Dollar move.