Potential CBO short for UCAD, has been ranging in a daily wedge / channel for a while now, with a recent overshoot to the upside momentum and volume has dropped especially after the initial rejection from the major resistance level, UCAD is starting to break down. We created a smaller up trend / rising wedge on the 4hr and have now broke the support and are retesting the 1hr and 4hr EMA, if we see signs of rejection and trend change confirmation from the rejection we'll get in for the longer term move to the downside, overall the market is sideways / bearish. Good confluence on all time frames with very little discretion technically. Fundamentally, at 1:30 (GMT) USD has the inflation rate (YoY) and data for jobless claims, we'll see how those affect the markets and do some du-diligence before we enter, it won't necessarily affect our strike decision, but we will take into account the positioning of our stop.
Comment:
UCAD finally drops of after US service activity falls for first time in 4 years, this just gives CAD the strength it needs to push the US dollar to the next key levels, currently approaching / held up at a minor (1.32031) so we'll keep a close eye and see what sort of liquidity we have around this level. Stop is moved to 3 pips to remove risk.