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.
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!