Countertrend Forex Setup on USD/CAD

Oh dear! Major currencies seem to be so fickle these days! That’s why I decided to just come up with a quick forex day trade idea on USD/CAD. Have y’all seen this falling channel on its 1-hour time frame?

USD/CAD Forex Day Trade

USD/CAD Forex Day Trade

As of this writing, USD/CAD is testing the channel support while stochastic is indicating oversold conditions. This is mostly a technical countertrend trade idea, but I’ll still be looking at economic data for confirmation. I’m thinking that this pair might make a good strong bounce if Canadian data (building permits and Ivey PMI) come in weak in today’s US trading session.

If I’m able to jump in, I’ll be aiming for the top of the channel at 1.11000 but I’ll be adjusting my stop to entry once price tests the mid-channel area. Since I’m going for a news play, I’ll set a tight stop below the bottom of the channel. What do you think?

Cheers,

Happy time

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