USDCAD Long-term SHORT play

Dec 12, 2016

With the recent spike in oil prices due to OPEC and non-OPEC countries agreeing to cut oil output, USDCAD may resume its downtrend starting in early 2016. Using fibonacci retracement, we can see that price popped and attempted to break the 50% fib level around November 14, but was rejected by that resistance level.

With a conservative stop loss at 1.322, a take profit at 1.299, we can aim to capture 131 pips with a sell and hold strategy.