Yeah, the market completely ignored the 1.2420 level and it seems as if the remaining channel and longer term wedge are the remaining valid setups. I think you are right Dominican about setting a short sale for this week. With the levels were they are at, you have a really good stop at around 1.25 and a good play down to about 1.2300, for a good risk/reward play. But be careful about the consolidation for those two weeks. That could offer some trouble or it could be completely ignored (we'll have to wait and see).

I think this pair won't get down to profit though until the end of the week. U.S. news is pretty light and Canada is empty until thursday. Thursday could be potentially good for the CAD with permits and the Ivey index coming out and no concurrent news with the US. Friday could be a different story though. CAD will release unemployment data, but the US unemployment data (along with sales and credit) could turn the pair in the dollars favor and finally break the pair above the three year trend line. With US non-farms so bad as they were last time, any rise could encourage a boost in the greenback. You should probably keep your eye on your stop on Friday and play it more aggressively if needed (maybe even going long if the trend breaks).