USDCAD 12H shortUS Dollar vs. Canadian DollarFX:USDCADFX-DiariesUSDCAD has been moving up very strongly since last week. It broke through the resistance level around 1.41311 and is now trading between that broken resistance and the next resistance level around 1.42853. So far, there have been no significant corrections or pullbacks, which makes me believe that a correction is still needed. My trading plan is based on that expectation. The price has moved strongly in a bullish direction, but eventually it should correct. That is why I already started selling last week. I kept my position open over the weekend because the pullback I was expecting had not happened yet. At the moment, the price seems to be waiting for a catalyst. That catalyst could be today's high-impact news release at 14:30. I prefer to enter the trade before the news rather than waiting until after the announcement. To summarize: I check price action to determine whether the market has become extremely extended. The Daily RSI also confirms that the market is overextended, with virtually no meaningful corrections along the way. When both price action and RSI indicate that the market is stretched, the probability of a move to the downside increases. Let's see what happens this afternoon.