This will be the last “Pick of the Day” for the week as I will be taking off tomorrow to be with the family for the holiday weekend.
Tonight’s pick will focus on the Loonie and the Canadian Consumer Price Index report, which is to be released tomorrow morning at 7:00 am EST. Recent Canadian economic data has been significantly weak, especially today’s retail sales number which was reported much lower than economists forecasted at -1.2% headline/-0.9% core.
The inflation reports tomorrow are forecasted weaker on a monthly basis, most notably the core number at 0.1% versus 0.6% in the previous month, but stronger on a yearly basis with the headline number up 1.0% and 1.7% at the core. I see the pair taking more notice of the yearly numbers by drifting lower, but USD/CAD can drift either way before the report is released.
After the report is released, we will probably see some volatility. Being that the markets have been quiet and ranging, we will look to fade any volatility and go long at support areas, or go short at resistance areas.
In last night’s trade, I overestimated the size of the range, so for tonight’s trade we will bring our entry orders in tighter by using pivot point levels. Here we go:
Short USD/CAD at 1.1480, stop at 1.1500, pt1 at 1.1460, pt2 at 1.1440
Long USD/CAD at 1.1440, stop at 1.1420, pt1 at 1.1460, pt at 1.1480
Please cancel opposite order once a position has been entered. Good luck and