USDCAD Trading Plan

The fundamentals that move the Canadian Dollar the past week or so were the updates on the NAFTA deal. If a deal struck, Canadian will definitely strengthen. However, the Commodity Market is an important catalyst as well specifically Oil. US-China Trade war somewhat affecting market sentiment and the energy market is no different. The market sentiment at the moment is fragile.

Having said that though, technically we have setups and if the market players decided to dump their CAD longs that I would hope will be illustrated in the chart as a bullish engulfing candle, then I will be a CAD Bull. Should there be an update of the NAFTA deal specifically hinting or confirming a NAFTA deal will be struck, I will short the pair and target according to the daily range.