There is potential for a counter trend trade of USDCAD at the daily level. We just had a large move down, and now the RSI is under 30. Price action is currently at historical support levels around 1.2713. I would enter long at 1.2713 and look to take targets at the .382 retracement around 1.3111 with stops 1.2427. This trade setup presents a 1.39 risk reward ratio. More aggresstive traders can target the .618 level around 1.3371 level. This presents a 2.28 risk reward ratio. If targets are hit, then enter short for a trend continuation trade on the current downtrend.
Trade active:
This trade is actually still running as stops have not yet been hit, but it looks like the bulls might be building strength for a push. At this point, we might be looking at the down trend to reverse into an uptrend if enough buyers come into the market.
Trade closed: target reached:
Both targets have been hit as the bears grab hold of the bulls and rip them apart into bloody pieces of chewed up steak.