The commodity currencies were particularly strong against the USD today and with WTI up, a short was taken in the USDCAD.
An earlier entry would have been ideal, but once the pair had downside momentum today, a trade was taken risking 11 pips for a potential 50 pips to our target at 1.2499. After the entry, the pair moved lower through its Asian session range and yesterday’s low. We exited the trade at the U.K. close – about 15 pips above our target. Had I been able to watch the trade following the London close, I would have kept it on.
If the DXY continues lower for a fourth day tomorrow, the pair could test 1.2475, 1.2449, 1.2413 and 1.2400
A move higher could test 1.2627, 1.2646, 1.2675 and 1.2700
Good luck with your trading!