Pick of the Day: EURCAD – Trade Closed

Trade Closed: 2007-01-12 10:50

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Our trade triggered in the early US hours, and after weathering some whipsaw action, pt1 was hit! We closed the first half of our position and locked in +30 pips, then moved the stop on the second half of our trade to breakeven. The second half of our position was stopped out soon after as the pair retraced back up to 1.5150 before heading south again.

1st Half: +30 pips
2nd Half: +00 pips
Total: +30 pips

So, we ended the week on a positive note. I hope everyone has a wonderful weekend, and an extended weekend for those in the US!

Trade Idea: 2007-01-12 00:36

For tonight I’m looking at EURCAD. Here’s my thought process…We have a weak sentiment on the Euro after Trichet commented without the “strong vigilance” rhetoric. Also, we may see strength in the Loonie tomorrow as OPEC conducts an emergency meeting after oil prices slid to around $51 per barrell. They may cut the daily output which may push oil prices higher. A short trade makes sense, so let’s short below the previous low at:

Short EURCAD at 1.5140, stop at 1.5180, pt1 at 1.5110, pt2 at 1.5060

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!

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