Looking at the 15 minute USDCAD chart, we can see there are no real buyers above the Asian highs or 1.2500 figure. As the pair reverses we enter with a 17 pip initial stop loss for a potential 100 pip gain to our Target 2 – just below the 1.2400 figure. As price begins to descend we need to clear the Asian low then the session low. With the first round of US news pending and price right at the session low, we move our stop loss to just above the Asian low to allow for a retest with the worst case scenario being that we are closed out by the news reaction reversal for a positive trade.
Price retraces upward but does not retest the Asian session lows and begins to descend further. Once it hits our Target 1, we see long lower wicks indicating buyers entering at this level. We move our take profit level down in advance of the second round of US news. The subsequent spike upward takes us out.
This pair is very sensitive to crude oil pricing at the moment…but not always. The EURCAD and GBPCAD are bigger movers, so I watch the 3 pairs together and look for the best setup.
Good luck with your trading!
Back tomorrow if we find a trade.