Trade Closed: 2007-03-29 15:25
Hello sorry for the late update on this trade. Unfortunately, I caught the flu bug going around, but I seem to be getting over it now. It looks like the pair failed to follow through the downward spike from earlier this week and stay range bound for the last 2 days. The third portion of our trade was stopped out for additional +10 pips on a spike up during the morning Euro session yesterday. So, after all it is all said and done we managed to capture 30 pips from USD/CAD. Awesome!
1st position: -35 pips
2nd position: +55pips
3rd position: +10 pips
Total: +30 pips
Trade Update and Stop Adjustment: 2007-03-27 19:35
Hello! Just a quick update on our short play on USD/CAD. Our short position triggered at 1.1625 hit its profit target at 1.1570 for +55 pips. That just leaves us our position that we re-entered at 1.1600. We will adjust our stop on that short to 1.1590 to lock in +10 pips on that position. Our new target will be 1.1500. If the pair drops to that level we readjust our stop, so stay tuned!
1st position: -35 pips (closed)
2nd position: +55 pips (closed)
3rd position: +35 pips (open)
Trade Update: 2007-03-26 11:15
It looks like the portion of our short position that triggered at 1.1600 stopped out at a small -35 pips loss. The pair is heading back down south again, currently trading near 1.1600 once again. The rise in oil and commodities should continue to be bullish for CAD, while the weak housing data should be bearish USD. I will re-enter a short half the normal position size at 1.1600 with as stop at 1.1650, pt at 1.1525.
1st half position: -35 pips (stopped out)
2nd half position: +25 pips (open)
Re-entered half position at 1.1600
Trade Update: 2007-03-23 14:10
Greetings Everyone! It looks like one of our short orders was triggered in the USD rally this morning after the Existing Home Sales numbers came out better than expected – up almost 4%. I still favor the short trade on the pair, especially with oil still on the rise, so we will hold onto this position into the weekend. Stay tuned for more updates and have a great weekend!
Trade Idea: 2007-03-21 22:55
Hello! Hello Everyone! We have see a lot of strong moves in the currency markets, especially after today’s FOMC interest rate statement, huh? Well, today we will take a look at the Canadian Dollar, which has gained significantly against the US Dollar in the last couple of trading sessions.
Before we go into today’s trade we’ll take a quick look at the commodities. As I’m sure some of you know, the “Loonie” has a strong positive correlation to Oil prices, and today we saw oil rise for a third day in a row as the markets see an increase in demand from US refiners. This should have a positive affect on CAD.
With the Fed leaving out commentary that suggests a possibility of an interest rate hike today, traders will continue to price in a possibility that the interest rate differential will narrow between the Canadian Dollar and the US Dollar. So, we should see USD/CAD drop further as traders have a short bias on this pair.
On the chart, we can see that the pair has moved over 200 pips in the last two trading days. Stochastics are in oversold territory, so we may see retracement on profit taking. This should be a great opportunity to short at a great price!
If the pair retraces, then
Short half normal position size of USD/CAD at 1.1600, stop at 1.1635, pt at 1.1550
Short half normal position size of USD/CAD at 1.1625, stop at 1.1670, pt at 1.1575
Please remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.