The USDCAD has been on a super rally recently helped by a weak CAD due to the Oil drop recently, however the stochastic + divergence show us that a slight pull pack should be on thecards this week prior to Wednesdays night Fed decision.
A good trade idea is to place a short trade with stops above the recent highs and aim to take a few pips, however make sure you get out prior to Wednesdays decision as I suspect we will be seeing a rally on the DXY and therefore you'll want to be long on this trade providing oil continues to weaken and the FED raised the interest rate by atleast 25 basis points, which will support the dollars bull run!
Comment
⋅
For more updates and information, sign up to my website, which will be updated with exciting updates in the new year: ejfxtrading.com
Comments
trader515
⋅
post actual setup, you are talking about short positioning yet your arrows are showing up?
EvanJones
⋅
Correct. I expect USDCAD to retrace towards the trendline before resuming upwards after Wednesdays FED decision. So the arrows are suppose to show a slight increase before a retracement and then by Wednesday/Thursday, we'll know whether to go long or not.