Trade Closed: 2007-02-20 17:05
Our trade stopped out today as the loonie sold off against all of the majors today. Our short orders were triggered at 1.1675 and 1.1690, and unfortunately, USD/CAD didn’t find resistance until 1.1715. So, we were stopped out on our full trade for a total loss of 45 pips.
1st half: -25 pips
2nd half: -20 pips
Total: -45 pips
Trade Update: 2007-02-20 11:15
We entered half our normal position size as we saw volatility push USD/CAD lower and then higher after inline CPI numbers and slightly better than expected Leading indicator numbers out of Canada. I still think there is a bearish sentiment on this pair, but with such strong upside momentum I am going to adjust my profit target on this position to 1.1655 to take a quick profit. Stay tuned!
Trade Update: 2007-02-20 00:15
This evening we will take a look at USD/CAD. We’ve seen weak data out of the US lately, including Philly Fed Index, jobless claims, housing data, etc. All of this, along with weak US PPI forecasting a weaker CPI number, has the market bearish on the Greenback. On the other side of the pair, we’ve seen stronger data out of Canada, including more jobs, a larger trade surplus, and a surprise in Wholesale Sales. This has got me bearish on USD/CAD, and we’ll see if we can jump in short at a great price!
On the chart, we can see that the pair has been range bound for a bit now, and stochastics are on the rise. With Canadian CPI and leading indicators out later today, we may see enough volatility for the pair to break out of the range. With a bearish sentiment, I’d like to see a quick break to the upside, so that we can jump into the pair short at a great price.
Short half normal position USD/CAD at 1.1675, stop at 1.1700, pt at 1.1635
Short half normal position USD/CAD at 1.1690, stop at 1.1710, pt at 1.1655
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!