The USD/CAD pair has been in a short term downtrend which is pretty easy to see on the hourly chart. We’ve see strong moves in this pair, with the most recent move after the Canadian GDP monthly number coming lower than expected. The pair is consolidating now, waiting for its next catalyst, but what could that be? Well, tomorrow we have US economic reports coming out at 8:30 am EST – most notably the PCE deflator number. A surprise can cause a stir in the pair, and I think we’ll see movement as soon as the Euro trading session begins as traders get position for this report. So, we’ll have a trade prepared in both directions. Good luck and good trading, and please use caution and good judgement before tomorrow’s reports!
Long USD/CAD at 1.1330, stop at 1.1305, pt1 at 1.1350, pt2 at 1.1380
Short USD/CAD at 1.1270, stop at 1.1295, pt1 at 1.1250, pt2 at 1.1220