Pick of the Day: USD/CAD – Close Open Orders

Close Open Orders: 2007-07-10 15:10

Looks like no trade today. We did see volatility in USD/CAD after the Bank of Canada decision to hike rates to 4.5% and hinted at one more hike in 2007 as a possibilty. Unfortunately, it wasn’t enough for a breakout or to hit our fade play short at 1.0560. The pair found resistance at 1.0540.

As I was telling traders in the chat, I think we will see the pair trend down further possibly to 1.04.

For now, no trade and close all open trade orders.

Trade Idea: 2007-07-10 08:42

We have the Canadian Interest Rate coming at 9:00 am EDT. Here’s my trade idea:

Short USD/CAD at 1.0470, stop at 1.0510, pt1 at 1.0450, pt2 at 1.0430

or fade a rally

Short USD/CAD at 1.0560, stop at 1.0590, pt1 at 1.0540, pt2 at 1.0520

Please remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly!

Good luck and good trading!

Trade Idea: 2007-07-10 00:00

PoD Chart

Good Evening! Today we will take a look at USD/CAD ahead of the Canadian Interest rate statement. Market expectations are for a rate hike to 4.50%. Of course, the actual decision isn’t the only factor as traders will be watch the statement afterwards for hawkish or dovish rhetoric. For now, we will have a straddle play setup to take quick pips out of the market when we do see volatility.

On the chart, I drew a box showing how the pair may range ahead of the statement. I am favoring a short play as the longer term trend is to the downside, but there are many market participants out there who think this pair is way oversold.

So, it’s hard to tell how far this pair will go in the short term, so we will wait until the morning US trading session starts to put in our orders. No specific entry orders right now. Stop by again the morning at 8 am EDT.

Also, I will host a test chat session in our new chatrooms from 8 am EDT to 10 am EDT (12 pm GMT – 4 pm GMT). Just go to our Forums and click on “Chat Rooms” to enter our chats. We’ll talk about whatever is going on in the markets or how awesome the “Transfomers” movie was or whatever. Stop by and say hi!