USD/CAD is on the move. There are a lot of factors going on here. We had Trump’s Speech last night and Bank of Canada Rate Decisions this morning. There was a Super Shallow (.236) Retracement on the 1-Hour Time Frame and the Month and Daily are looking to make a move upward, but are still in the B to C movement.
With the BOC announcement, the market could retrace back in the A-B Boundary on the 1-hour time frame. This is where the fundamentals and technical ability meet with each other. We see heavy USD Strength at this time, but good news out of Canada could push the market back down, creating a good opportunity to get into the market between the .382 and .618 and trade it up to the D Extension. We can then see the Daily Target (ABCD’s) and trade them up to the Daily Target and then to the Monthly Target as the market waves up.
What do you think about this trade opportunity? Let me know if you plan on taking it and what strategy you might be using to make some potential profits.