Pick of the Day: USD/CAD – Trade Closed

Trade Closed: 2007-05-09 16:30

It looks like the market decided to close our positions down for us as USD/CAD dropped further after we adjusted our trade. Our trade hit our adjusted profit target at 1.1060 to lock in +30 pip a few hours before the FOMC Interest Statement.

1st half: +30 pips
2nd half: No trade
Total: +30 pips

Trade Adjustments: 2007-05-09 08:40

Hello everyone! As expected, USD/CAD rallied just a bit more during the Euro/Asia trading session. It was just enough to trigger our short order at 1.1090 then head back south to its current trading level around 1.1070. Let’s remember we do have event risk with the FOMC Interest Rate decision coming up at 2:15 pm EDT, so let’s make a few adjustments.

Cancel open order to short at 1.1110.
Adjust stop on open position from 1.1130 to 1.1105 to reduce risk.
Adjust profit target of open position to 1.1060 – near the Euro session low for the pair.

Stay tuned as I make further adjustments at the close of the Euro trading session around 12:00 pm EDT. Good luck!

Trade Idea: 2007-05-08 23:35

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I know what you all are thinking, “USD/CAD again!!” I can’t help it! It’s the talk of the town and it seems everyone is all for the “Loonie!” Well, we have a lot going on in the upcoming trading sessions most notably the Fed Interest Rate Statement at 2:15 pm EDT later today.

We saw USD/CAD rally today on slightly weaker than expected Canadian Housing Starts and as traders bet on hawkish rhetoric from Bernanke. Is this recent bull run a shift in sentiment? I don’t think so. Canadian economy is rocking and rolling and with recent geopolitical risks occurring in Nigeria, Canada’s number one export oil may see a rise in price.

So, I’m still very bearish on USD/CAD, and I see recent price action as a possible opportunity to enter short at a great price. We may see a little more rally left during the Euro and Asian trading session, and if the pair reaches 1.1100 we should be good to go for a short trade.

Short half position USD/CAD at 1.1090, stop at 1.1130, pt at 1.1050

Short half position USD/CAD at 1.1110, stop at 1.1130, pt at 1.1075

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

Stay tuned for updates! Good luck and good trading!

PS – Be sure to check out our new lessons that will give you an introduction to Commodity Currencies, Currency Crosses, and Trading Divergences…. Enjoy!

2 comments

  1. Robertt

    re: Pick of the day. Thank you, I followed your lead after my own research and went with you. I didn’t get your update, so I went with the original 1.1090 short, stop at 1.1130 and took GOOD profit at 1.1050, Excellent. What about the cable tomorrow? .25 or .50 rate increase ?

    Reply
  2. Robertt

    re: Pick of the day. Thank you, I followed your lead after my own research and went with you. I didn’t get your update, so I went with the original 1.1090 short, stop at 1.1130 and took GOOD profit at 1.1050, Excellent. What about the cable tomorrow? .25 or .50 rate increase ?

    Reply

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