Fundamentals: USDCAD retraced up by dint of dovish BOC statement today (BOC may cut Overnight Rate in Jan).
Then Fed rate cut of 25bp was announced later today.
But at present, the fact is rate cut by Fed and no rate cut by BOC and dovish BOC has already been priced in. Therefore, recent dovish FOMC press conference will push USD/CAD down again a little bit and it can reach 1.3105 (± 3.0) pips that is FIB61.8 of whole move up since yesterday.
Technical analysis: A downward thrust that makes a ground of bread and butter, was formed with all candle closed below 3x3 SMA (blue line). The idea of bread and butter is market will restart going in direction of thrust after retracement, then it can go to 61.8% of retracement or even can continue further. Retracement started from ABC-61.8 expansion level yesterday and continued today by dint of dovish BOC.
We are continuing with sell trade of USD/CAD in spite of better NFP today. To understand the reason, read fundamental part of https://www.keonconsultancy.com/post/buy-eur-usd-post-nfp-nov-01-2019
Stopped out because Canada's GDP m/m. came out to be 0.1% vs forecast 0.2%. Nevertheless, previous actual was 0.0% and this release is still greater. USD/CAD erased little bull move cause by this data in 7 minutes, so we re-entered sell to continue with the trade plan with SL and TP as per the analysis.
Action ahead of Canada's GDP m/m: Trades are already running with +10.0 pips, we can set SL either at entry price or at 10.0 pips above ask price right before release of Canada's GDP m/m.