Pick of the Day: USD/CAD – Trade Closed

Trade Closed: 2007-10-12 09:44

USD/CAD rallied up to .9800 during the Euro trading session before dropping once again below our entry point.

We took the 40 pip loss, a frustrating one at that as I may have adjusted a little too early.

Total: -40 pips

It’s Friday, and we may see some volatility as many traders close positions out for the weekend. Join us in the chatroom as we watch event releases and see how it affects the market!

Trade Update: 2007-10-11 12:40

Just a quick update on our short position. Our trade was triggered during the morning European trading session at .9750 and quickly bounced up to .9770 shortly after.

Trade data came out better than expected for both the US and Canada, but it looks like the Greenback sold off as major retailers reported weaker numbers, indicating a weaker retail sales number tomorrow.

So, our position is back in the black as it trades up about +15 pips, so we will hold and adjust our stop to just above the US session high to reduce our risk.

Adjust stop from .9850 to .9790.

Also, I just wanted to thank everyone for visiting the chat rooms. We’ve had a lot of visitors lately and a lot of fun, especially today’s chat! We had a great time talking shop and watching the EUR/USD together. Congrats to those who caught some pips on that EUR/USD rally. I hope to see more people in there to share more ideas and to learn from everyone. I try to be there during the Euro/US overlap, so stop by and say hi, ok? Stay tuned!

Trade Idea: 2007-10-10 23:50

PoD Chart

Tonight we’ll take a look at USD/CAD as we have Trade Balance data for both Canada and the US to be released later today.

The pair is currently trading in a 40 pip range at the moment – a good sign we may see a breakout. With both countries expecting betters numbers compared to last month, it’s hard to tell what direction it may go. But as they always say, “the trend is your friend,” so we will trade with the current direction if the pair breaks lower.

The risk to our trade is that the down trend may be a little over done as stochastics linger near over sold territory. If we do see a break to the upside, that may prove to be an opportunity to short at a better price. Here we go:

Short USD/CAD at .9750, stop at .9850, pt1 at .9700, pt2 at .9650

if the pair breaks higher….

Short USD/CAD at .9900, stop at 1.0000, pt1 at .9850, pt2 at .9800

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

Good luck!

  • darimik

    Short USD/CAD at .9750, stop at .9850, pt1 at .9750, pt2 at .9650

    Shorting at .9750, and having a pt1 at .9750 ?

  • marketsurgeon

    What really should be the p1 for your first trade idea where you have pt1 at .9750?

  • Pipcrawler

    Oops… sorry about that… pt1 should be .9700 on that first order.

  • darimik

    Short USD/CAD at .9750, stop at .9850, pt1 at .9750, pt2 at .9650

    Shorting at .9750, and having a pt1 at .9750 ?

  • marketsurgeon

    What really should be the p1 for your first trade idea where you have pt1 at .9750?

  • Pipcrawler

    Oops… sorry about that… pt1 should be .9700 on that first order.