I wish everyone a happy, healthy and prosperous new year!
We begin 2021 with a bearish USD bias as the market flows continue to show USD selling.
With WTI Oil testing $50 to begin the year, a level not seen since pre-pandemic, a short USDCAD position was taken risking 18 pips for a potential 50 pips to our daily target at 1.2708.
As the U.S. session overlap got underway a brief move higher was rejected and subsequently even strong ISM Manufacturing numbers couldn’t give the USD a boost upward.
Price moved lower through its Asian session low, stopping to test its daily low before moving down to our daily target as the U.K. session closed.
With the 1.2700 figure just under our target, we were happy to get out… anticipating some buyers entering, but it was not the case as the pair continued lower after the U.K. close.
This pair has been one of my favourites to trade since WTI Oil moved back above $35. It doesn’t always net many pips but it has been active most days and 10 -20 pips is frequently achieved while protecting profits.
Good luck with your trading in 2021!!!
