Following a strong downward momentum at the end of last year, USD/CAD pulled back and on the weekly chart demonstrates signs of slowing down the rally, which gives an opportunity for sellers to form short positions.
Looking at the three-wave pattern (ABC) where wave "A" represents the bearish movement at the end of last year, market players could open short positions with stop-loss set at 1.35800. Take profit upon the breakout of 1.33500, 1.31700, and 1.3090.
Short positions could also be opened above current prices on lower timeframes.
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.
