Demand for dollar dipped after news emerged that employment in the US non-farm sector was less than expected. This pulled USD/CAD down, thereby continuing the bearish three-wave pattern in the daily chart.
As of today, buyers are being forced to set their stop orders beyond the round level of 1.26. In this situation, it is best to avoid taking long positions with a stop at 1.26, or betting on a decline from pullbacks with take profit on 1.16. This plan is based on the price action and stop hunting strategies.
Keep in mind that the pair is currently moving within a three-wave pattern, and wave "A" represents the selling pressure at the end of December 2021.
Good luck and have a nice day!
