Woohoo, pips in the bag! My USD/CAD short forex position is going well so far so I’ve decided to make some adjustments ahead of this week’s BOC statement. In case you haven’t seen it yet, don’t forget to check out my initial trade idea first.
Thanks to upbeat Canadian jobs figures released last Friday and upbeat expectations for the BOC statement and OPEC meeting, the Loonie was able to advance against its counterparts for the past few days. On the flip side, uncertainty surrounding Fed policy biases has been dampening dollar demand.
Now that price has gained a bit of bearish momentum, I’m looking to reduce my exposure to event risks so I’ve decided to trail my stop slightly below entry and lock in some gains. At the same time, I’ll try to press my advantage with fundamentals going in the Loonie’s favor by lowering my profit target closer to the actual channel support at 1.2725.
With these adjustments, I’ll be able to lock in a 50-pip gain or a 0.12% profit on my account while improving my R:R from the initial 1.25-to-1 to 1.75-to-1.
There are no major reports lined up from Canada or the U.S. for today but I’m thinking that traders could keep pricing in expectations for the upcoming events, probably dragging USD/CAD much lower. After all, a decision from the BOC to keep interest rates on hold and stay hopeful about the Canadian economy’s recovery could spur another Loonie rally.
What do you guys think of my trade adjustments? As always, I’d love to get your feedback on my setups!
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