At a favourite time of the UK session, it was evident that the USD was weakening. The USDCAD had a nice double top for the session and a triple top for the past 24 hours.
As the other majors showed similar strength to the USD… the CAD looked like a compelling short opportunity. A stop loss is placed above yesterday’s high as we enter short. The stop loss was 16 pips for a potential 116 pips to our Target 2.
In advance of the first US economic news release, we locked in profits by placing our profit stop at the Asian high to guarantee 20 pips on the trade. Price dropped after the unemployment print and then formed a wicky candle as buyers entered long. We tightened our profit stop to just above the candle high and the subsequent candle closes the trade.
Good luck with your trading!
It’s been a quiet summer week leading up to the FOMC yesterday. The Bloomberg issue was more interesting than the release itself.
Back tomorrow if we find a trade.
