Be sure to pay attention to the breaking news this afternoon. President Trump is slated to give a press conference later on in the session announcing the nominees for the next Federal Reserve chair. The Wall Street Journal is reporting that current FED member Jerome Powell has been tapped to receive the honors.

Powell seems to share the President’s views on deregulation and making gradual changes to monetary policy. So, for the moment, it looks as though Janet Yellen’s career as FED chair is coming to a close.

USD/CAD Technical Outlook

It is possible that we may see a spike in volatility facing the USD around the announcement. In the event that we sellers dominate the action facing the USD/CAD, there are a few key support levels that may be of use.

USD/CAD, Daily Chart

For the session, the USD/CAD has experienced considerable pressure, trading to the bear over 50 pips. Here are the key support levels:

• Support(1): 38% retracement of October’s range, 1.2731

• Support(2): 38% retracement of 2017’s range, 1.2722

Bottom Line: The convergence of these two levels forms an area of robust support. I will be taking position longs from Support(1) with a 10 pip shaded entry (1.2741). An initial stop loss at 1.2699 will produces a 1:1 R/R trade for 50 pips.

The beauty of using Fibonacci levels to define entry is that they are static. As long as October’s high of 1.2860 remains intact, then our support area is valid.

Position trades can take some time to develop. In the event that this trade is elected, be sure to check back for position management ideas for how to maximize profit while limiting downside risk.