Pick of the Day: USD/CAD – Trade Closed

Trade Closed: 2007-02-13 14:00

We reached full profitability as the second half of our short USD/CAD reached 1.1680. Dollar sentiment was bearish today as we saw the US trade gap rose to $61.2B in Dec – worse than the market was expecting. This was mostly due to a widening oil trade deficit as oil prices rose slightly from November to December.

1st Half: +20 pips
2nd Half: +40 pips
Total: +60 pips

I hope everyone did well with this trade. Stay tuned for the next “Pick of the Day”

Trade Update: 2007-02-13 09:40

We saw the Trade Balance numbers come out for the US and Canada at 08:30 EST. The US trade deficit was higher than expected at 62.2B, and the Canada’s surplus came in at a higher than expected 5.0B. This was very good for our short position. USD/CAD dropped and we locked in +20 pips for half of our position.

We will move our stop to breakeven on the second half of our position, and ride it out. Good luck!

Trade Update: 2007-02-13 07:30

Our short trade was triggered this morning and we are still in the trade. We do have the US and Canada International Trade Balance numbers coming up at 08:30 EST. With the US running a trade deficit and Canada running a trade surplus, inline numbers should help out our short position.

So, we will hold onto our short position for now and cancel our open orders to go long at 1.1775

Good luck, good trading!

Trade Idea: 2007-02-12 23:31

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We have quite a few numbers being released today, but I think we may have opportunity for a great trade with USD/CAD. Later, both the US and Canada will be releasing their respective monthly Trade Balance numbers. Expectations are pretty much in line with the previous months, so any kind of surprise should knock this pair out of the range trading it’s doing right now.

The pair is currently consolidating right now. We will use pivot points to see where potential support and resistance areas are to place our entry and exit points. Here are a couple of trade ideas:

Long USD/CAD at 1.1775, stop at 1.1745, pt1 at 1.1795, pt2 at 1.1825

or

Short USD/CAD at 1.1720, stop at 1.1750, pt1 at 1.1700, pt2 at 1.1680

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

Good luck and good trading!