There are multiple signals forming at this key level on both the 4hr and . Mostly likely the only reason this market isn't moving is because there are major news announcements later today for both CAD (Avg Hourly ) and USD (Non-Farm Payroll). Traders are clearly waiting for those announcements before entering their positions.
It's a tough one. This presents me us with both great opportunity and great risk. I'd usually stay well clear of major news, however USDCAD really is showing some great signals at a very strong resistance. I feel fairly confident that the pair will move lower, but the NFP tends to cause a rather violent spike in price which means traders should have a generous SL, making the trade far less attractive in terms of risk/reward.
So instead of entering now or on the break of the , I'm going to place a stop order just under the in the hope that price touches it and fills my order at a much better price, then set my SL higher (above 1.3200). Of course the risk with this approach is that my order doesn't get filled and I miss the trade completely, but hey, it's the only way to get the decent enough R/R to make the risk worthwhile.
Let me know if you have any better ideas.