Friday, December 5, 2014

5 Dec 2014: USDCAD daytrade

This was a big day for the USDCAD. The US NFP figure and Canadian employment and trade figures all came out tonight at the same time, resulting in a gigantic bullish surge. The USDCAD gained 50 pips in five minutes.

The figures themselves were perfect. I was hoping for US NFP to be bullish, and Canadian figures to be bearish, which would result in a one-direction bullish spike. This is exactly what happened. The reason I say this is perfect is that the USDCAD has been bullish for most of this week (refer to H1 chart below - bears took the USDCAD down on Monday, but since then bulls have been moving in all week). Another bullish surge on the USDCAD would mean that there'd be many daily, weekly, intra-day and news traders holding long positions that they'd need to liquidate before the market closes for the weekend. There should be a good opportunity to short the USDCAD later tonight. 

I'm still waiting for the opportunity to fade the USDCAD, but I did take a short-term long on the 50% retracement of the bullish spike. I was aiming for a reward of 3R, but when price hovered at 1R and didn't break the lower swing high, I chose to get out. Price turned downward and would've taken out my stop loss.

(click to enlarge)

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