I wanted to provide some further analysis on this trade to emphasise why it is important to wait for an entry signal.
Although USD/CAD is currently in an area of overhead resistance and there is an overhead trend line which passes through the zone, which would normally provide me with enough confluence to open a position, the fundamentals do not yet favour this trade.
USD continues to outperform its G10 counterparts, whilst the Canadian dollar, despite strong data last week, is still under threat from faltering oil prices - it is because of these fundamental weaknesses that I will wait for a strong signal before entering this trade