Trade Ideas

USD/CAD trade idea

The same guy who told me to buy some weeks ago at .9785 is currently short and he expects the pair to fall sharply over the next few days. He says there are large stops below .9950 which will probably get triggered and he sees the pair falling to .9800 before the uptrend resumes. He’s short at slightly above current levels and has a stop above 1.0050, so I guess the risk-reward is quite good.

Don’t ask me about the Loonie, I refuse to trade it anymore. It’s taken enough of my ‘hard-earned’ for one┬álifetime!

Edit: Thanks to Kirill who makes a good point that the escalating violence in the Middle East could drive up oil prices which would of course favour the CAD.

  1. I wonder would short AUD/CAD be a better trade from return on var perspective? I think it is the same type of bet, but could be a little bit cleaner. Though one would need for better entry point. I was thinking about long CAD/USD, but in my simplistic understanding of technicals risk reward is not that great. I think 0.98 goal is a bit stretched, but not impossible. In a sense for 0.98 one would need cooperation from WTI, which in light of middle east problems could happen.

  2. CAD is stuck in a range. If it breaks 0.9985 it opens a big downside to 0.9800 atleast but there will be hurdles on the way.

  3. ok. I agree with ur friend. cad is looking bullish. failure to break 1.0037 on the upside is certainly looking bearish for dollar. I am also short usd/cad

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