Pick of the Day: USD/CAD and USD/CHF – Trade Closed

Trade Closed: 2007-04-05 08:40

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Our trade panned out well today as Canadian employment data came out better than expected with new jobs rising by 54.9k versus the forecast of 12.0k. This sent lead to some Loonie buying in the early morning and our short position was quickly filled and exited with a profit.

USD/CAD
1st half: +20 pips
2nd half: +45 pips
Total: +65 pips

With tomorrow being a holiday and the NFP, I think it’s prudent that we close the USD/CHF position that we left open. It’s been playing around the 1.22 level for a while now and it doesn’t seem to be going any where. To avoid event risk with tomorrow’s US jobs data we will close it at 1.2195 for -5 pips.

No “Pick of the Day” tonight, but I may have an idea tomorrow after the US NFP data release at 8:30 am EST tomorrow… stay tuned!

Trade Idea: 2007-04-05 00:05

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Good evening! Well, it’s been quiet in the Forex markets lately, hasn’t it? Well, it’s understandable with Easter holiday this week as well as the US Non-Farm Payroll reports on Friday. The traders that aren’t on holiday already are certainly waiting on the sidelines until we see a catalyst. For USD/CAD, that catalyst could be the Canadian employment data tomorrow at 7:00 am EST.

On the chart, we see the pair consolidating for the last 10 hours or so in a tight 25 pip range. Tight ranges usually means a breakout will occur sooner or later, so we’ll get ready for that. We will buy above the resistance at near 1.1600 or short below the lows around 1.1580. Here’s our trade idea:

Long USD/CAD at 1.1615, stop at 1.1585, pt1 at 1.1645, pt2 at 1.1675

or

Short USD/CAD at 1.1570, stop at 1.1605, pt1 at 1.1550, pt2 at 1.1525

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

Good luck!

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