Pick of the Day: USD/CAD

USD/CAD has been ranging between 1.1300 and 1.100, and it looks like it’s in a downward trend at the moment. After today’s US interest rate hike the pair made a strong move downward and I believe we may see a continuation of that move during the euro session. I’m thinking one of two scenarios may happen: 1. The drop down has been temporarily exhausted and we will be seeing a short term correction to the upside. At that point traders will jump in short again… or 2. A strong move to the downside will continue after the open of the euro session. Here’s a couple of short ideas:

Short USD/CAD at 1.1150, stop at 1.1180, pt1 at 1.1130, pt2 at 1.1100

Short USD/CAD at 1.1050, stop at 1.1080, pt1 at 1.1030, pt2 at 1.1000

Please be cautious during the morning US economic report releases at 8:30 am EST and 10:00 am EST.

Good luck and good trading!