The USD has been under pressure this week and so far 90.25 has held for the DXY. It’s been awhile since trading was as slow as it was this week. Ranges have been very subdued and Chair Powell’s dovish speech did little to attract USD bulls.
Today the USD showed some strength, but it didn’t last and a short on the USDCAD set up with a risk of 17 pips for a potential 45 pips to our daily target at 1.2694. I had a few trades today, but this was the best one.
The USDCAD moved up to the 1.2754 level early in the U.K. session then pulled back and rose again to the same level during the U.S. session overlap, but could not close above it. After a favourite 3 candle reversal pattern, a short was taken and price moved lower to test its Asian session high, then moved down sharply to our daily target where we exited the trade in advance of the U.K. close.
This pair tends to move well during the North American session but can also move well when oil is on the move or making headlines.
We never know exactly when trading will be very active or very slow but it’s worth showing up each day to find out… if you can.
Today was a great way to end the slow week. It’s a long weekend in North America.
Good luck with your trading, stay healthy and enjoy your weekend!
