Pick of the Day: USD/CAD – Trade Closed

Trade Closed: 2007-05-29 10:55

Our profit target was hit at 1.0730 as USD/CAD continued to fall after this morning’s interest rate decision and the statement soon afterwards. The pair is currently finding support between 1.0710 – 1.0720, and it looks like it will consolidate for the rest of the day.

Total: +40 pips

Congrats to those who made pips!

Trade Update: 2007-05-29 09:20

The Bank of Canada kept interest rates at 4.25% today, but stated that we may see a hike in the “near term.” Economic growth data has surpassed the BoC expectations and that future in flation will persist above their 2% target.

So, USD/CAD fell on this news, triggered our short order at 1.0765 and is currently finding support at 1.0750. To reduce our risk, I would like to trail our stop.

Adjust stop from 1.0805 to 1.0785

It is reported that after 1.0750, there is buying interest at the 1.0730, so we will adjust our pt to that level.

Adjust pt from 1.0725 to 1.0730

Good luck!

Trade Idea: 2007-05-29 01:00

Pick of the Day

Good morning and welcome to another wonderful week of Forex trading! Today, we are checking out the USD/CAD as it appears that price action is consolidating around 1.0800. Later today we have the Bank of Canada Interest Rate decision at 9:00 am EDT.

On the chart, we do see divergence as prices have been drifting lower as stochastics rise out of the oversold area. We can see a pop to the upside with this type of setup, especially if the BoC fails to raise and if they have a negative statement on the Canadian Dollar’s recent appreciation.

Of course, we will have a short trade ready to go as well as we may see a further push of the Loonie against the Greenback to continue the trend….

Long half position USD/CAD at 1.0840, stop at 1.1.0800, pt at 1.0900

Short half position USD/CAD at 1.0765, stop 1.0805, pt at 1.0725

Please remember to never risk more than 1% on any given trade. Adjust position sizes accordingly!

Good luck and good trading!

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