USD/CAD setting up for a fall?

The last couple of days have seen USD/CAD take a tumble of over 200 pips. Nothing particularly drastic about such a decline for this fast-moving pair, but we could be presented with an opportunity in the coming days to jump on board the decline.

USD/CAD setting up for a fall?
USD/CAD setting up for a fall?

As you can see in the image I have marked on a support level which was broken and has yet to be fully retested.

I would think that if price action retraces past this support level and back to around the 61.8% Fibonacci retracement level, we could potentially have a short trading opportunity with a decent risk/reward.

Our stops would of course need to go above the recent swing-high (the 100% level in the image) and we would set conservative targets just before previous swing-low (the 0% level in the image).

Time will tell, traders!

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