USD/CAD: Shorts good to go post FOMC

USD/CAD shorts look good as markets digest FOMC

Yesterday I posted about a trade setup on the USD/CAD pair. See here. My reasoning for the trade was the recent 'flip-flop' from BOC's Governor Poloz. Again see the background here.

All was good to go apart from the fact that it was FOMC yesterday and the risk was a bullish FED putting more bids under a buoyant dollar. That risk has passed. And while there were not any surprises. again see here for that potential I was looking for, there was a more dovish outlook from the Fed. Check out Adam's debrief here. So, my trade is now good to go. CAD should strengthen and USD should fall. Technically USD/CAD sits at a lovely supply area, risk has passed and there is plenty of downside. I discount NAFTA as the deal will either be done, or delayed, but it shouldn't be dumped. Can't see that happening...