Potential measured move on USDCAD to the downside.
I am currently short on a USDCAD trade with the expectation that recent price action will descend lower, retesting September lows near the 1.2100 handle. After retracing and rejecting 61.8% of the December 19 - February 2nd downtrend, price appears poised to fall lower on dollar weakness across the board. Stop is placed at 1.27150, right above resistance (point C) further bolstered by the 200-EMA. Take profit is placed at the 1.2100 handle, which retests September lows and completes an AB=CD measured move.
Immense dollar buy-up ahead of tomorrow's FOMC minutes. Fortunately I have hedged this trade with an even larger AUDUSD short, but we'll see if our man Trump can make a comment about "unfair trade" with our neighbors to the North between now and tomorrow. Alternatively, the minutes may prove unsatisfactory and prompt a move to the downside. We shall see.