As the dollar strengthened today, a long was taken in the USDCAD after it pulled back into its Asian session range and bounced higher. The entry required a risk of 13 pips for a potential 34 pips to our daily target at 1.2134. With the compressed ranges of the pairs earlier in the week, it was not a surprise to see them extend today… coupled with the strong USD move higher.
Price moved to our target in the U.S. session overlap, then extended higher in the last 2 hours of U.K. trading. We protected our profits at our target level by placing our profit stop right at 1.2134. Price almost retested the level but moved higher and we stayed in the trade until the U.K. close. This was the third USDCAD trade in a row.
Most of the majors had nice setups today so overall it was an excellent day to find trades.
Enjoy your weekend and good luck with your trading!
