Closed Trades: 2007-07-12 09:30
Well, it looks like my “Double Feature” trades did not pan out so well as it appears I was a little early on my downtrend bias on USD/CAD.
My second entry short stopped out as well after the CAD interest rate statement and Dollar bulls took over. This didn’t last for too long as the longer term trend took over at 1.0600 and the pair has now dropped below 1.05.
Half USD/CAD: -50 pips
Our Aussie did well as it snagged +20 pips as the pair trended higher and has ranged around .8600 to .8630.
Half AUD/USD: +25 pips
Trade Update: 2007-07-09 09:55
Hello my friends! Just a quick update on our double feature. First, our trade in AUD/USD has been triggered half a position long at .8605 and currently trading at .8603. No major news events so we will hold on to this trade.
For our USD/CAD position, we were triggered short half a position at 1.0450, but the pair rallied to stop us out. I still like a short play so I am going short again.
Stopped out half position: – 50 pips
Reentering half position at market (1.0470), stop at 1.0520, pt at 1.0400
Trade Idea: 2007-07-06 15:00
Hello! Today, I thought I’d post two trade ideas to wrap your brains around for the weekend! Let’s first take a look at the Canadian Dollar, the fantastic run it has been on, and see where it may head to next:
As I have said before, the Loonie is gonna keep rocking throughout the summer! We have a good chance to see it break 30 yr highs as we saw Canada add 34.8K jobs – way more than the forecast of 17.5K by economists. Add to that the 21.4% of new Building Permits in the last month and +$70 a barrel oil and it looks like everything is going in favor of a hike from the Bank of Canada next week.
So, we will try to catch a possible break to the downside in USD/CAD, or jump in at a better price if we see a retracement:
Short half position USD/CAD at 1.0550, stop at 1.0600, pt at 1.0450
Short half position USD/CAD at 1.0450, stop at 1.0500, pt at 1.0400
Let’s also take a look at AUD/USD because it looks like this pair may continue it’s trend as well:
As shown on the chart, AUD/USD has been consolidating for the past few days. Now we saw 132K Jobs added in the US and a revision of previous months adding another 75K! This pair should have dropped, but it just goes to show that the bullish sentiment for the Aussie hasn’t changed and that it’s only recently been weak on USD strength.
I don’t think this will last for too much longer and we may see volatility return to the pair, especially with Aussie employment data coming out next week.
Like our USD/CAD idea, we will look to jump into the trend either on a breakout to the upside or a retracement to the downside.
Long half position AUD/USD at .8590, stop at .8540, pt at .8650
Long half position AUD/USD at .8605, stop at .8555, pt at .8630
As always, risk management is key to trading success, so please never risk more than 1% of your account on any single trade. Adjust your position sizes accordingly!
Good luck my friends!