USDCAD has been a difficult one to call of late. The chart is finally showing some clarity after the recent correction higher.
Many variable to this trade . The threat of the NAFTA agreement being scrapped and the ongoing oil price jitters. We also have a few variables in the possible pattern (both bearish) scenarios. I favour the downside and will be looking for a reaction within the flag that has formed ( yellow box on chart ) after the recent stall in price action.
Short trades towards 1.2520, or on a break below 1.2430 is my preferred strategy from here. I have a smaller short position going into the new week and am looking to add. If the head & shoulders play out, look for a test of the 1.2300 area.
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