Following a strong downward movement last week, USD/CAD went into a deep correction and currently trades above the 38.2% retracement level.
Looking at the three-wave pattern (ABC), where wave A represents last week's bearish momentum, traders could consider short positions, with stop-loss set at 1.39. Take profit upon the breakdown of 1.36200 and 1.35673.
The trading idea follows the framework of the "Price Action" and "Stop Hunting" strategies.
Good luck in trading and don't forget to control the risks! Have a nice day.
