1) At the moment, CL1! is at the lower limit of a multi-week . Indicators show it is oversold, so it will likely rise in the following days, pushing USDCAD down.
2) USDCAD is close to a multi-day resistance, and its (RVI) is close to 80, indicating a possible retracement.
My strategy for this trade will be the following:
- If USDCAD shows bullishness, wait until resistance is reached. If it cannot break it, short (at about 1.3080), with a stop loss just above the resistance (at about 1.3100, for a loss of 20 pips), with target at 1.2980 (profit of 100 pips).
- Short if USDCAD shows strong bearishness, with same target and stop loss just above breakeven (~13045).