USD/CAD has touched the top of its four hour trend-line and its confirming bearish momentum targeting 1.2850 area. The pair is overbought in the 4 hour timeframe and correlates with the weakening USDX. I am entering a short position at 1.305 with a stop loss of 20 pips and a take profit of roughly 200 pips giving us a 10:1 risk to reward ratio. My stop loss is short on this because the pair had so much upward momentum last week and I would rather get stopped out and try the sell again later rather than hold onto a losing trade.
Bank of Canada Interest rate decision later this week will be a big mover as well as IVEY PMI, however other than these two events there is not much driving the Loonie.
The United States has a ISM early in the week, followed by the ever popular NFP and FOMC speeches that happen the 1st week of every month.
Beware the volatility these events can bring!
Bank of Canada Interest rate decision later this week will be a big mover as well as IVEY PMI, however other than these two events there is not much driving the Loonie.
The United States has a ISM early in the week, followed by the ever popular NFP and FOMC speeches that happen the 1st week of every month.
Beware the volatility these events can bring!
Comment:
I forgot to add USD crude oil inventories later in the week, known to be especially powerful with this pair.
Trade closed: stop reached:
Despite the American & Canadian markets being closed yesterday the dollars gains could not be stopped. The trend is broken. Lets allow the price action to retrace before entering a long position.