The USD has fallen against the Canadian dollar for 7 straight weeks.
As the U.K. session got underway today the USDCAD moved beneath its Asian session low luring in breakout traders. A pullback into its Asian range known as the “wash and rinse” followed and price began to move lower where we entered risking 10 pips for a potential 36 pips to our daily target at 1.2073.
As price moved lower we protected our profits, particularly in advance of the U.S. open. We closed the trade at our target.
Forty-five minutes after entering the USDCAD short, we entered the EURCAD short risking 14 pips for a potential 42 pips to our daily target at 1.4713. Price went sideways for an hour before descending into the U.S. open where we again protected our profits as there was potential for volatility with all the U.S. economic releases today.
Price continued lower and our trade was closed at our target.
The USDCAD is likely to find buyers near its September 2017 low at 1.2060 on its way to potentially test the 1.2000 level.
If the EURCAD continues lower, be careful around the 1.4600 figure down to 1.4580.
Good luck with your trading!
