USDCAD - Short opportunity if price holds below resistance area

Fundamentally speaking, there is a chance that USD could be dropping lower if this month's CPI prints a lower number than the previous month's number. Furthermore, combined with CAD fundamentals that starting to align with Oil price fluctuation provide a quite stable CAD outlook.

In terms of technical perspective, a big rejection candle that is present on top of the marking area provides a signal that a continuation to the downside is quite possible.

In conclusion, as long as the price did not move higher and close higher than the high of the rejection candle, a short position is preferable.

"Trading is NOT about how often you are right!! Trading is a mathematical calculation of the ratio of the results you WILL get to the risk you MAY spend!!!"

Comment:

USDCAD - 1st target reached.

Feel free to book your profit or trail the position accordingly to aim for 2nd target