If structure holds this pair should bounce back from its bullish trend line since the start of last month, and with added confluence of the 61.8 fibonacci level, we should have seen the end of this downwards correction. The bearish momentum of USD/CAD has been overturned since coming out the daily parallel channel and subsequently this pair has been forming higher highs and higher lows. This setup has a 70 pip stop due to NFP today and therefore should be sufficient to ride the "noise" however a clear break of this trend line will invalidate this structure, suggesting USD/CAD has entered a bear market. The setup has a potential of gaining 165 pips with a risk/reward of just over 2.3, which gives it good value to enter.
Trade closed: target reached:
Hit target, great swing trade!