Pick of the Day: USD/CAD

Tonight’s pick is on USD/CAD. It’s been in downtrend amidst US dollar bearish sentiment and higher oil prices. With today’s double economic whammy of lower US CPI and Housing Starts, we may see greenback sell off continue as the probability of another FOMC rate increase drops. To find a great price to jump in the trend I’m looking for a sell below the pivot point at about the 38% fib retracement area. Also, the stochastics are indicating an overbought sentiment after the big drop this morning, which is a great signal for a short. In case the pair continues north, I have another short order prepared at the R1 line:

Short USD/CAD at 1.1175, stop at 1.1205, pt1 at 1.1150, pt2 at 1.1100

Short USD/CAD at 1.1240, stop at 1.1265, pt1 at 1.1220, pt2 at 1.1190