Pick of the Day: USD/CAD - Trade Closed
Trade Closed: 2007-05-31 11:59
Our trade was triggered short at 1.0675 at the beginning of the US trading session this morning. Unfortunately, it was one of those cases where I was able to pick the support area instead of breaking area. Shortly, after our trade was triggered, we saw US quarterly GDP slightly weaker as expected and Canadian monthly GDP unexpectedly weaker. It looks like the CAD bears won out and the pair began to rally back up to 1.07. Doh!!
Total: -35 pips
Trade Idea: 2007-05-31 04:54
We have a nice simple idea for the last pick of May in USD/CAD. Within the next few hours we will see the US and Canadian GDP data. The markets are expected weaker US numbers while recent data supports stronger Canadian data. Right now, I do not see this sentiment priced into the market as we've see rangebound trading between 1.0710 to 1.0750.
This means we will probably see a breakout, and if the numbers come out as expected, we will see the downtrend in USD/CAD continue. Let's prepare for it:
Short USD/CAD at 1.0675, stop at 1.0710, pt1 at 1.0650, pt2 at 1.0615
Please remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Good luck and good trading!
