Technical outlook and chart setups:
The USD/CAD pair is trading around 1.3210/12 at the moment and might be preparing for a larger/deeper correction lower before resuming an uptrend. As depicted on the H4 chart, the pair could be unfolding a potential head and shoulder reversal and might have formed the Right Shoulder at 1.3275 as well. It is hence recommended to initiate 50% short positions now remaining 50% around 1.3320, in case it gets reached, with risk at 1.3450/60. Immediate support is seen at 1.3125 followed by 1.3050 and lower, while resistance is seen at 1.3320 followed by 1.3450 and higher.
Trading recommendations:
Initiate 50% short positions remaining at 1.3320, stop is at 1.3450, a target is open.
Good luck!
