Potential Short Opportunity for USDCAD

23 Apr 2020

I see a short opportunity for this pair. It recently touched the bottom of the ascending channel. Instead of rising to the opposite direction as it should have, it is currently consolidating. This to me signifies there is a lack of willingness for buyers to continue buying (after the strong USDCAD bullish moment due to the low oil prices). Instead, this might signify a sign that short sellers can take this opportunity to start selling the pair and drive prices down.

However, to be safer, i will wait for a definite break on the ascending channel and the identified horizontal support. Then, i will sell on the pullback.