In a few hours time we have some major news release on the CAD - Trade Balance, Interest Rate and Oil Inventories, which has major impact on this pair.
Two outcome I am expecting:
1. USDCAD broke all my Supply and Resistance levels and hit my Stop loss for my 2 months' long position trade and I exit with a small profit.
2. Price tumbles down further and challenge the 1.31-1.32 region again.
I am in favor of the 2nd outcome due to the fact that USDCAD appreciated close to 250pips over 2days and it is unlikely to continue moving up, at the very least a pullback before going higher. Let's say I am right on this, I will be looking to add on my short positions and take partial profits and let the rest aim for longer targets.
Price is now resisted at my , and early short level, at the same time it formed a on the way up. To wait for the break downwards and enter sell order on the 0.618 pullback. The empty space in the red circle shows where price is likely to go after a rapid upward move.
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