USDCAD : SHORT TRADE SETUPUSD/CAD stays above 1.4000 and the key question is whether it will continue the recent upside move. At this point, the nearest major resistance level is located at 1.4575 and 1.42300. This level has already been tested many times and has proved its strength.
We also note USD/CAD is struggling to continue above the recent highs formed towards the end of last week at 1.41500, therefore a pattern of lower highs may present itself on the chart which will be bearish for USD/CAD.
On the support side, USDCAD, may likely head towards the major demand level at 1.3850. which is where sellers may be considering taking profit.
From a big picture point of view, USD/CAD continues to trade in a wide range between 1.3850 and 1.4250, and the pair will need substantial catalysts to get out of this range.
Risk Warning : The risk of loss in trading Foreign Exchange (FOREX) can be substantial.
You should therefore carefully consider whether trading is suitable for you in the light of your financial condition.
Goodluck !
