Last week began with USDCAD back near the large range top at 1.0250. Though we saw no candlestick signals, our bias remained short given the pair’s previous behavior at this level. We opted to wait for confirmation of a close below resistance on today’s candle to go short again towards the bottom of the range.
Our confirmation came, and we shorted USDCAD following the next day’s bearish close. As we noted, we monitored closely as the pair tested the trend line at 1.0100. USDCAD did not stall here, breaking though with a Long Black Candle and prompting us to remain short. While there was a relief rally back to the tend line following the break, this support-turned-resistance was not penetrated and remains in effect. We will move our stop to break even (in our case we got in at 1.0185) and continue to hold short towards our target at 0.9835.
USD/CAD Strategy
1. Continue holding short USDCAD.
2. Move stop to break even (1.0185 is our case).
3. Target 0.9835 near the range bottom.
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