The Greenback saw another leg up today, pushing USD/CAD in my favor. With the rally stalling at minor resistance, I decided to lock in profits & move on.
Original Trade Idea: Long USD/CAD after the FOMC
It’s been a choppy ride since entering USD/CAD last week, and even a bit concerning after Canada printed positive data last week (e.g., higher inflation and manufacturing sales), but the U.S. Dollar is kicking butt so bad that USD/CAD couldn’t break the minor support area between 1.0900 – 1.0950. And fortunately for my long position, Canada printed weak retail sales data this week which was the catalyst for another leg higher in this trend higher.
Since I meant for this to be a swing trade, and with the market now finding resistance at 1.1100, I decided to take profit manually at 1.1102.
Total: +97 pips/ +0.57% gain
Of course, I still like a long position in USD/CAD, but after a nice rally since testing 1.0900 last week, it might be due for a short-term breather. And in hindsight, I probably could have executed better on my entry, waiting for the bottom of the range I originally pointed out as a potential support area (1.0950 – 1.1000), but given my experience over the past couple of years of missing profitable trades trying to catch a pullback, it was the right move.
Again, I’ll be back in forex watch mode, not only on USD/CAD but also that recent pullback in USD/JPY. That pair is in consolidation mode at the moment, which may be an interesting candidate for a breakout setup in the near future. Stay tuned!