A week of central bank interest rate announcements made for very volatile currency markets.
As the U.S. session got underway today, the USDCAD retested its Asian session high and immediately found buyers. An entry long was taken risking 20 pips for a potential 53 pips to our daily target at 1.3060.
Price moved sharply higher, slowing a bit as it approached the mid-figure before making a surge to close above our daily target level. We locked in our profits as the market moved a little higher before a pulling back to close our trade just above our target.
Weeks with multiple interest rate decisions by central banks tend to create extremes in price movement. Personally, I prefer to be on the sidelines and wait for the markets to digest the implications which can take a day or two.
Enjoy your weekend and good luck with your trading!
