Pick of the Day: USD/CAD

Well, it’s the last trade of the week, and we’ve done pretty well for the week…+120 pips up until this point. Should we take a break and start the weekend early?? Naaaahhhhh =) Well, I see a breakout opportunity forming in the USD/CAD pair. This is obviously due to traders waiting for the Canadian employment reports coming out at 7:00 am. Last months numbers are forecasted to be better than the previous month, and with other factors such as oil and strengthening in the Canadian economy, I like a short play on this pair. Inflation risks out of the US does put risk to the upside, so we’ll have a long play prepared for any inflation statement surprises. Of course, with event risk we’re going to keep a tight stops and I feel we can get decent execution on this trade, unless there was a huge surprise in the numbers and extreme volatility…Here we go:

Long USD/CAD at 1.1130, stop at 1.1110, pt1 at 1.1150, pt2 at 1.1180

Short USD/CAD at 1.1085 stop at 1.1105, pt1 at 1.1065, pt2 at 1.1035