USDCAD – close longs, tactical sell
USDCAD long trade turned out to be a very profitable one (see my review from Feb 4th). The pair raised as the commodity-proxy currency had a pressure due to the sharp drop seen in crude.
The pair has approached the upper border of priceline space around 1.3340 and this is typically a very strong resistance area, especially taking into consideration a sharp rally preceding it. Price is overbought and this is an opportunity to close longs and enter short trade.
Today Canada will publish the employment data. It is seen as optimistic figure and nevertheless we will rely on technical view.
Selling from current levels is my next bet. Scale into position, as usual, add up at 1.3340 should the price goes up and expect drop to 1.3280 area. If price breaks below, next strong support is 1.3240. Use this tactical short as a quick profit trade opportunity.
Have a nice weekend !