Good afternoon team,
We are taking a look at the USDCAD again as the technicals still remain valid. Despite the surge in the DXY overnight, the USDCAD remained within the valid zone for a short setup. This could be due to a number of reasons and most likely due to crude oil prices stabilising at support.
USDCAD 1 Hour Chart
Firstly, the head and shoulders structure is still in play which indicates a bearish move is on the cards. The 38% FIB retracement is providing resistance at 1.2650. The current structure also looks corrective in nature. We are keeping our SL wide on this setup as the target zones are very large.
Trade Setup: SELL Market Execution, current price 1.2612, stop loss 1.2727 and take profit target 1.2182.
Stop loss: 115 pips
Take profit: 430 pips