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Decided to lock in some profits on my USD/CAD short ahead of last week’s NFP data and it looks like that was the right move…or could I have played it a little differently?

USD/CAD Short Closed

USD/CAD 4-Hour
USD/CAD 4-Hour

After almost a month in this short position, I was finally taken out last week after better-than-expected U.S. jobs data gave the Greenback one last push ahead of the Friday close last week. It looks like both wage and jobs growth was enough to get USD bulls back in the game, along with some risk-off vibes across the global equity markets over the past few sessions to push traders into safe havens like the Greenback. This brought USD/CAD up to my stop level at 1.2410, which I adjusted to ahead of the U.S. jobs report, to close me out for a small gain.

Total: +90 pips/ +0.24% gain on 0.50% risk

Not a bad take given that this pair basically went from fast downside momentum to slow grind lower over the last few weeks. This is likely due to fading bullish sentiment on the Canadian dollar with an unclear picture on NAFTA negotiations. Fundamentally, I’m still bullish on the Loonie over the Greenback, but I’ll stay away for now because of the NAFTA uncertainty, the recent global risk-off sentiment and today’s weaker-than-expected Canadian Ivey PMI data. The technicals look good for another short, but y’all know I don’t take a trade without the fundies backing it up!

That leaves me with my AUD/JPY short play for now, which is positive and up nicely thanks to the risk-off sentiment. It’s not far enough in profit to warrant an adjustment now, but if the downside momentum continues, be sure to look out for an adjustment to reduce risk and maximize profit potential. Stay tuned until then…good luck and good trading!

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