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Trading Scenario:
USDCAD initially made a false breakout from its resistance level at 1.0470 and made a high of 1.0508 and failed to sustain above 1.0470. After increased interest rate decision from BOC from 0.75% to 1%, USDCAD made a strong push to the downside making a low of 1.0345. Considering the current sentiment fundamentally and technically, USDCAD is bearish and CAD may strengthen in coming weeks ahead targeting parity once again.
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Now USDCAD is moving in a bearish channel. We will be interested in selling any rallies on this pair. Once the price breaks below last swing low of 1.0339, momentum will pick up on this pair for another downward extension. USDCAD upside move seems to be limited at this time. USDCAD potential sell zone now falls in between 1.0400 - 1.0436. Any upside movement into this zone, we will be looking for possible reversal to enter our short positions.
Entry Strategy : Selling rallies in downtrend at our suggested resistance levels.
Trade Suggestion: Go short in between 1.0400 - 1.0436 targeting 1.0350, 1.0300 & 1.0220 for a potential of 200 pips.
Trend Direction: Bearish
Key Support Levels: 1.0338, 1.0295, 1.0230, 1.0170
Key Resistance Levels: 1.0380, 1.0400, 1.0420, 1.0436
