US PMI trading plan and analysis

Having compared strengths of all major currencies this week, we decided to trade USD/CAD to long side if US Flash Manufacturing and Services PMI beat the expectation collectively.

USD/CAD had already taken support on D1 horizontal support line illustrated in the graph below, then it broke above the minor 3 days resistance after Canada’s CPI was released. These phenomena make USD/CAD the most suitable forex pair to buy if we see positive US economic data.

If USD/CAD reaches the uptrend line in the graph shown below by the time of release of US PMIs, and if we get the better PMIs; we can buy it and target 1.37.

Exit in loss if D1 closes below 1.3622.