Pipcrawler's Pick of the Day: USD/CAD

USD/CAD has made several attempts to break the 1.1250 price level on the hourly chart, but it looks like a "no go" as we're seeing a move down in the pair. Now, it may find resistance at the 200 sma, that's why I'm looking to short with a strong break below it. Tomorrow morning we have economic reports coming out of Canada including Retail sales and Leading indicators, but forecast numbers are lower than previous - we may see the pair move back up on loonie weakness. I'm going in contrarian mode...if we see a surprise to the upside in economic indicators, we could see a strong move downward. Here's a trade idea for that circumstance:

Short USD/CAD at 1.1115, stop at 1.1140, pt1 at 1.1100, pt2 at 1.1050

Good luck and good trading!

After the impulse wave pattern, we saw the corrective waves and a move sharply lower. It was helped by comments from the Bank of Japan Governor Fukui. Fukui stated that "monetary policy decisions should be made early and changes should be made in small increments." And the market went Yen long on this statement. This caused our trade to trigger and reach maximum profit within a couple of hours! Hope everyone caught some pips!

Lot 1: +20 pips
Lot 2: +46 pips
Total: +66 pips