USD/CAD recently shifted from strong uptrend based on falling oil prices and NAFTA issues to strong downtrend after OPEC announced an extension to production cuts. Right now we are testing a breakout of the downtrend, we could see a possible break to the upside or if prices stay within the trend we could retest support for a bounce or further downside. The direction we go will probably be determined based on fundamentals (NFP friday, FED rate hike, OPEC decisions) so keep in mind. A couple scenarios to keep an eye on.
Comment:
Confirmed break of TL, created a higher low. Looking to retest support/ TL to see more upside, correlates with falling oil prices.
Trade closed: target reached:
Great! Picture perfect trade, correlated with a drop in US oil.