USD/CAD: a possible short-term SELL position

As it can be noticed from the 4h timeframe chart, the price has made a massive impulsive bullish move to the upside and has now approached a key level of resistance.

After an impulsive move, a correctional leg should follow. Thus, we are patiently waiting for the price to form a valid top at the local key zone before charging up for a short-term bearish rally.

We are targeting the area of previous resistance which has now turned into support that lines up with the 0.618 Fibonacci retracement level.