Pick of the Day: USD/CAD

USD/CAD has made several attempts to break the 1.1250 price level on the hourly chart, but it looks like a “no go” as we’re seeing a move down in the pair. Now, it may find resistance at the 200 sma, that’s why I’m looking to short with a strong break below it. Tomorrow morning we have economic reports coming out of Canada including Retail sales and Leading indicators, but forecast numbers are lower than previous – we may see the pair move back up on loonie weakness. I’m going in contrarian mode…if we see a surprise to the upside in economic indicators, we could see a strong move downward. Here’s a trade idea for that circumstance:

Short USD/CAD at 1.1115, stop at 1.1140, pt1 at 1.1100, pt2 at 1.1050