Forex Marketz Daily Forex News – Fully Markets Update
I am deciding to keep my long USD/CAD trade open now even though a bearish engulfing candlestick has formed on the daily chart. This hints at a move lower is in the cards for the Dollar against its Canadian trading partner in this Forex market.
Technical Analysis
Let’s look at today’s technical analysis in the USD/CAD Forex market. There is near term support lining up at 1.2617. A daily close below this level will challenge the technical support lining up at 1.2525. The alternative analysis, should the Dollar push higher, thus supporting the USD/CAD notes near term resistance lining up in a cluster zone that runs to he July 30 high. This area is at 1.2769 to 1.2798. A break above this area will challenge the technical resistance lining up at 1.2923.
Trading Strategy
As I mentioned above, I am long USD at 1.2648. I have already booked half of my profits on this position and have moved the stop loss to break even. Even though a bearish engulfing candlestick has appeared, which is worrisome, I would like to see more confirmation of a downturn before rushing to close the long trade down. With the absence of a defined bearish reversal I am standing pat on this trade. I will try to capture any further USD strength.