BOAFX

USD/CAD Short position

FX:USDCAD   U.S. Dollar / Canadian Dollar
Trading Opportunity :- Sell USD/CAD            

Risk Reward Ratio :- 2.25:1

Fundamental Analysis:-

The Canadian dollar             is a commodity linked currency with the commodity being Oil             you can see from the recent news why I am interested in this currency pair. With the price of Oil             being supported by tensions in Iran it is only natural to see the Canadian dollar             strengthen which it did last week. Friday saw good figures for Canadian employment change and unemployment dropped from 5.9% to 5.7%. On the other side of the equation the USD had a fairly weak Non Farm Parole figure and the ISM also showed a slip in expansion which weakened the USD across all the major currencies. Although the Federal reserve are expected to increase their interest rates again in March we have to question whether or not USD tightening is already priced into the market. I expect to see further USD weakness and Canadian dollar             strength over the coming months. Keep an eye on the USD CPI             figures On Friday afternoon next week as I expect them to also show weaker consumer spending.

Technical Analysis:- A lot of the downside in this currency pair may well have been caused by the Iranian problems so I am taking into account a correction before investors start to sell again. There is a good area of confluence around to 50% Fibonacci pullback 12650 which also coincides with previous support on the consolidation at around the same price so this is going to be my entry for a sell. My stop is going to be above the level of consolidation 12970 with a target at the previous low back in September 2017.

Entry price:- 12650

Stop loss :- 12970

Take Profit:- 12000


Comment: Still holding this trade idea through next week as it still has opportunity to trigger
EN English (UK)
EN English
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out