Taking a look at the daily timeframe, RSI is indicating lack of the bullish momentum as we head into tomorrow's Canadian Employment figures at 8:30AM EST
== Here's the Forecast == Unemployment Rate: expected to rise from 5.5% to 5.6% Employment Change: +15k new jobs.
Upon reviewing the forecast and based on my gut feeling, I believe there likely could be a positive surprise for the CAD and thus drive this pair lower.
My trade idea is simple. If you're able to weather a 50% potential DD for a potential 50% gain, I think entering short sell here targeting the 200 SMA or 1.35 handle could work.
If the CAD employment figures come in less than analysts expectations, the CAD will likely weaken but let's leave some room to add another sell position around 1.3845
Since this trade idea includes NO STOP LOSS don't execute this idea with an account you can't afford to lose.