Trade Closed: 2008-03-31 09:23
Our trade triggered on Friday, and after going our away by about 30 pips or so, buyers jumped in today around 1.02 to push the pair higher even as Canadian GDP came out higher than expected.
So our trade was closed at a loss.
Total: -1% loss
This move was more on a US Dollar rebound against the Commodity Dollars rather than the short term fundamentals. The Greenback rebound against the Loonie may continue higher, but the next resistance area to watch is 1.0290 – 1.0320. I may sell again if price action tells me so. Stay tuned!
Trade Idea: 2008-03-27 18:30
Greetings everyone! This past week has been filled with strong moves in the currency markets as the US Dollar sells off, rallies, and loses value once again. It’s been a wild ride, but I think traders are sitting back and taking a breath this week as economic data has been relatively unexciting. With USD/CAD ranging, I look to short at the top of range for a short term play to close out the trading week.
I am short bias on this pair as it appears we are back to US Dollar weakness. This bias has boosted commodities as well, which accounts for half of Canada’s exports.
On the chart, we can see the pair reverse lower from the 61% Fibonacci level twice before, and without any major news coming up tomorrow, I think the pair may continue to stick to the range. Ofcourse, if economic data does come out USD positive, we will have to re evaluate and adjust.
Short USD/CAD 1.0225, stop 1.0275, pt1 at 1.0175, pt2 at 1.0100
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Stay tuned my friends, and good luck!