December Canadian Dollar head and shoulders last shoulder developed. Fall below pivot at .75405 may indicate a drop to S2 .74805, minimum height of last shoulder.
The monthly chart of the Canadian Dollar futures (continuous: current month) shows a giant head-and-shoulders with resistance at the 60-month moving average (low).
looking at the daily chart of the canadian futures index (D61!) price is at daily supply so any shorts would be counter trend based on the index chart but maybe not on the pairs.
We may have a Three Drives scenario with Jun CAD. USD was looking like a Head and Shoulders this past two weeks. CAD caught in sideways action. S1 at .74545 would become support for this move. Could also use S2 at.74090. Will have to wait and see.
Target is value area low. Would ideally see ABC and be able to fade B down to C.
Short bias but only scalping since must be wary of a pullback since it's not clear where A is on the chart.
Once a big green bar forms it will be much easier to project the location of B and be more aggressive with shorts.
Shorting CAD on oil being lower over night, great place to short with a clear stop loss above the high of the day
Gonna watch out for DOE or any rally on oil before DOE to GTFO of the trade
