USDCAD is still trading inside the rising channel on its 1-hour time frame and may be ready to resume the climb if it finds support at the bottom of the channel near the 1.0850 minor psychological level.

Stochastic is already in the oversold zone, hinting that a bounce might take place soon. If you’re bearish on this pair though, you could still catch the selling momentum from its current levels until the bottom of the channel since the stochastic hasn’t crossed upward yet.

On the other hand, if you’re looking to follow the ongoing uptrend, you could set a buy order at the channel support and aim for the top above the 1.0950 minor psychological level. With a tight stop, this could yield a 2:1 return on risk for a day trade.

By Kate Curtis from Trader’s Way