From a technical perspective of this currency pair, I’m advocating for a CAD long. A look into the weekly chart indicate that this pair is trending lower in a tight triangle and is now almost at its apex-check the attached weekly chart.
I will be looking for a break below the lower support trend line in the weekly chart and I shall initiate a short but before that happen it is important to exercise patience and wait for all turn of events. Overly, there is a strong selling pressure and if you check all the 4 previous candle sticks, you can easily spot 3 dojis and one bullish candle with virtually no buying pressure as there was no lower wick. This means the selling pressure is strong enough and with tomorrow’s CPI and Retail sales data set to be released at 1230GMT, all conditions-from the charts points for a downward motion.
I will therefore recommend we look for short positions in the 1 hour chart tomorrow and initiate a short as follows:
Sell Limit: 1.4510-20-this is at the higher side, at 23.6 Fibonacci level drawn from today’s Hi-Lo
TP: 1.32-long term target, coincident with 161.8 Fibonacci extensions, in the weekly chart
Have a good trading day.