Trade Closed: 2007-11-07 21:28
Just as fast as we saw the US Dollar drop yesterday, we saw it come back to bring the pair back to our entry point and close out our remaining position.
1st Half: +50 pips
2nd Half: +00 pips
Total: +50 pips
It looks like traders took the retracement as a buying opportunity as the Loonie found support against the Greenback around .9400 and rallied back to its current level around .9300. I look for a further drop in the pair to .9000 and possibly beyond as US Dollar bearish sentiment reigns supreme in the currency markets.
Stay tuned for a new trade idea in the pair and I hope everyone did very well on this trade! 🙂
Trade Adjustment: 2007-11-07 10:17
Comments from Chinese officials last night dealt a huge blow to the Dollar as China diversifies currencies reserves away from the Greenback. This sent USD/CAD falling, enough to trigger our first profit target and beyond.
Half position closed at .9200 to lock in profits. Adjust stop on remaining position to breakeven at .9250.
A comment like this is huge as China holds $1.43 trillion in reserves, so there could be further momentum to the downside in the mid term.
Right now, we’re seeing a bounce back, but lets look for resistance at .9200 and see what happens there. Stay tuned as I may add on if the trade returns in our direction. Good luck! 🙂
Trade Idea: 2007-11-06 11:09
Hello! Hello! With crude oil continuing its run $100/barrel, a weak US Dollar, and positive Canadian data, we’re going to hook up with our friend, the “trend,” and hopefully ride USD/CAD down to .9000
So, it’s a simple trade as we jump in the strong down trend and target the psychologically significant level at .9000. We have another wide stop of 100 pips so we will reduce position size to stay within our risk tolerence of 1% of account.
Short USD/CAD at market (.9250), stop at .9350, pt1 at .9200, pt2 at .9000
Stay tuned as I may add onto this position if it goes our way.
Good luck my friends!