Fundamentally, we are having a bullish bias on USDCAD as we feel the market is too optimistic on Canadian hikes, given the collapse in WCS since turned neutral in October.
The 2 main resistance zones to look out for is the 1st resistance from 1.3321 - 1.3343 (61.8% Fibonacci extension) and the 2nd resistance at 1.3369 – 1.3392 (78.6% Fibonacci retracement). A break of both of those levels is an extremely bullish sign. However, if we see a break of 1.3182 (22 November low) our view shifts to being aggressively short.
Please take a look at our idea and let us know what you think.