Short USD/CAD – Trade Closed

Trade Closed: 2007-09-19 21:45

Our trade was closed out prematurely as USD/CAD experienced whipsaw action after the slightly disappointing inflation data for the Loonie…

It was a bit of bad luck as the pair dropped all the way back down near our entry order after volatility settled down.

Total: -75 pips

I am still short bias on the pair and look to build a short position as I expect the Canadian dollar to reach parity with the US dollar.

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Greetings! Today’s trade is pretty simple – run with the trend! The Loonie has been on a tear against the Dollar, and we’ll probably see a further drop after today’s Fed cut of 50 basis points!

On top of that, we have see that oil, on of Canada’s biggest exports, is trading over $80 a barrel today, adding to the Loonie’s appeal.

So, we will short USD/CAD at market (1.0105) with a wide stop, and wait to see if the Canadian Dollar can reach parity with the Greenback.

We do have a CPI data from both the US and Canada later today, which may help push our trade further.

Short USD/CAD at market (1.0105), stop at 1.0180, pt1 at 1.0050, pt2 at 1.0000

Remember to never risk more than 1% of your account on any single trade. Please adjust position sizes accordingly!

Good luck my friends!

  • marketsurgeon

    The trade was triggered, so are we seeing a retracement at the moment? Were you stopped out of your trade at 0500 EDT 09/18? and would you reenter the trade?

  • marketsurgeon

    The trade was triggered, so are we seeing a retracement at the moment? Were you stopped out of your trade at 0500 EDT 09/18? and would you reenter the trade?

  • sirpipsalot

    HappyPip,
    It whipsawed on me too but I am still in the fight. My s/l is at 1.0180 but when it whipsawed I only went to 1.0175. I guess I got lucky :)

  • sirpipsalot

    HappyPip,
    It whipsawed on me too but I am still in the fight. My s/l is at 1.0180 but when it whipsawed I only went to 1.0175. I guess I got lucky :)