Normally I stick to trading within the current week, that is the time horizon I will refer to with my trades. For the coming week(s) I am expecting the USDCAD to be bearish. I believe that oil has an upside potential within this time horizon further strengthening the CAD.
Still it is not the big fundamental picture that is the deciding factor for such a low intra-week time horizon. More important is the technical analysis.
The pair has a maximum upside towards the 1.3250-1.3275 area. If 1.3275 is reached a new high in the current is reached. I believe this to be the last high before the yearly lows might be tested.
There is also a possibility that the pair is forming a lower high and is not reaching the 1.3250 level. This is a strong argument for the change from a to a trend taking place.
I will place my stop above the 1.3280 level, when entering the trade. PA and a mechanical entry will decide my entry point. The mechanical entry is a safety line, if I/the system is wrong, it will often prevent me from making an entry.