USD/CAD – Close Open Orders

Close Open Orders: 2008-05-05 11:36

Our short USD/CAD idea looks like it panned out well…almost. The pair did find resistance and fell lower, but unfortunately it found sellers below our entry price around 1.0240 before falling lower.

Close Open Orders. No trade.

Trade Idea: 2008-05-01 12:13

comdollsff

Hello! We have a potential short play setting up on USD/CAD as the pair approaches previously tested resistance on today’s US Dollar rally.

The Greenback rallied on a broad base today as traders priced in the general belief that the Fed rate cuts are near its end. This belief will probably continue to push USD higher against CAD up to the resistance area, which may hold until tomorrow’s US Non-Farm Payroll numbers.

Unemployment claims have been high throughout April ending with today’s number at 380K claims for the week. This does not look good for NFP or for price action in the Greenback tomorrow.

So, if we do see the market take the pair up near 1.0300, then I look to short and target the bottom of the range highlighted on the chart and possibly lower. I look to risk around 100 pips for a rough 3:1 risk to reward ratio.

Short USD/CAD at 1.0275, stop at 1.0375, pt1 at 1.0175, pt2 at .9975

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

Good luck and stay tuned for updates, especially around tomorrow’s US Jobs data!

  • baileys

    Since Canada’s GDP actually contracted in March, the only thing holding it up right now is the high price of oil. The market has been bullish on the dollar all week. It will take a really bad NFP number to drive it down. If the number is anywhere close to expectations, we might actually see a spike up from the current level. Just my take on the situation.

  • baileys

    Since Canada’s GDP actually contracted in March, the only thing holding it up right now is the high price of oil. The market has been bullish on the dollar all week. It will take a really bad NFP number to drive it down. If the number is anywhere close to expectations, we might actually see a spike up from the current level. Just my take on the situation.

  • demontez

    I agree with you bailey. I have been watching this trade after the blog and it will take alot for the price to push up to entry level of 10275.I don’t see it happening in the not too near future when the dollar has started gaining strength now.

  • demontez

    I agree with you bailey. I have been watching this trade after the blog and it will take alot for the price to push up to entry level of 10275.I don’t see it happening in the not too near future when the dollar has started gaining strength now.