Trade Closed: 2007-07-18 11:05
Good Morning! Just a quick review of our short on USD/CAD.
Our trade triggered our first profit target last night and closed out half our trade for a profit at 1.0420 and then we moved the stop on the rest of our position to breakeven. The pair continued to move lower, but found support at 1.0400. The pair shot up with the help of unexpected weaker CPI data out of Canada and stopped us out on the second half.
1st half: +30 pips
2nd half: +00 pips
Total: +30 pips
The pair has shot back down after finding resistance at 1.0480. I see this pair rangebound for the day, possibly finding support at 1.04 and resistance at 1.0450.
Trade Update: 2007-07-17 12:05
Hello my friends 🙂 Our short order at 1.0450 was triggered during the morning European trading session and is currently trading around 1.0435.
We saw mixed US PPI data as the headline number came in at -0.2% and core read at +0.3%. Of course, the bigger event is the US and Canada CPI data tomorrow and Fed Chairman Bernanke giving the semiannual monetary policy testimony to Congress.
So, we have potentially market moving events within the next 24 hours, so we will probably see sideways action until then.
To limit risk, we will trail our stop by moving it from 1.0500 to 1.0480
Stay tuned for more updates and good luck!
Trade Idea: 2007-07-16 12:37
Hello Hello! We are taking another look at USD/CAD today. I know I was a little early on my last idea, but I think this pair is set to move again as it breaks below strong resistance at 1.0450.
A lot of factors are playing into this decision with oil still rising (currently just under $74/barrel), and traders are possibly pricing in one more potential rate hike from the Bank of Canada. We have inflation data out this week from both the US and Canada, which should bring enough volatility to push the pair down to the next resistance level around 1.0380, if the data is right.
The risk to this trade is still the overwhelming oversold sentiment from technical traders and surprise strength in US inflation data, but I think the probability is on our side, especially as we trade with the trend.
We will look to jump in this pair after a retracement back up to the previous support level at 1.0450 and target the next major support area.
Short USD/CAD at 1.0450, stop at 1.0500, pt1 at 1.0420, pt2 at 1.0385
Remember to never risk more than 1% of you account on any single trade. Please adjust position sizes accordingly.
Good luck my friends!!!