So far so good on my USD/CAD setup! With a bunch of top-tier Canadian releases lined up, I’m making a few adjustments on my open position. Oh, if you’re wondering what I’m referring to, don’t forget to check out my initial trade idea right here.
Zooming in to that short-term ascending channel I was also watching, I’ve noticed that price already moved past the middle of the range, which suggests that there’s enough bullish momentum to take the pair all the way to the top. Weak oil prices have been weighing on the Loonie these days while upbeat U.S. earnings data and a bit of risk aversion have supported the Greenback.
But while price is just less than a hundred pips away from my target at 1.3175, I don’t want to be too confident about a win just yet, especially since we’ve got the Canadian CPI and retail sales reports due in today’s U.S. trading session. Analysts are expecting to see lower figures for both inflation and consumer spending compared to their earlier readings, but I can’t rule out any upside surprises that might lead to a sharp Loonie rally.
Because of that, I’ve decided to lock in some gains by adjusting my stop higher, just slightly below the 1.3000 major psychological support and mid-channel area of interest. This would be 50 pips above my initial entry at 1.2925, which amounts to 0.20% in the bag.
I’ll be tuning in to the actual releases as well, just in case I’d need to make additional adjustments. Make sure you’re following me on Twitter to see my live updates and don’t forget to read our risk disclosure!
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