USDCAD day trading opportunity
next week has alot of fundamentals, so USDCAD will be tested heavily, by both bulls and bears, because on wednesday, there is BOC bank rates and on friday we have NFP. so no swing trades are possible here, unless you back it up with fundamental analysis. this week for USDCAD is basically going to be the same as last week for EURUSD, you can check my previous analysis. basically, neutral but volatility should be high, so looking for pullbacks or reversals after the numbers and news release will offer good opportunities. primarily because it will be very difficult to call direction with 2 interplaying fundamentals unless one is properly trained to handle such analysis.
As a technical short term trader, how i look for trades is to trade off of the market's reaction when these news or numbers get released, because its not condusive to trade higher time frame as holding longer term will only increase risk with reward, but volatility will be high, stops probably will be hunted, hence using the market's reaction to time entries will be superior strategy, because when the market reacts, big boys show their position, hence you can see the tilt from there after the market's levels and tilts have been tested. short scalps will offer good opportunities, after the news or numbers.
and no need to predict direction, let market show you the direction.
note: secondary fundamentals interplay, notice that AUD has current account, RBA announcement and cash rate, BOJ monetary policy, and Haldane from Britain is also speaking.
Why these are highlighted, you may ask. Reason, AUD is related to CAD by their commodity relationship, japan is related to CAD by oil and AUDJPY trades, and Brexit has caused britain to need a source of oil, hence GBP may have start to see a higher correlation for CAD because of their requirement for oil. These interplay in 2ndary relationships can cause either noise or extra momentum for USDCAD.
As a technical short term trader, how i look for trades is to trade off of the market's reaction when these news or numbers get released, because its not condusive to trade higher time frame as holding longer term will only increase risk with reward, but volatility will be high, stops probably will be hunted, hence using the market's reaction to time entries will be superior strategy, because when the market reacts, big boys show their position, hence you can see the tilt from there after the market's levels and tilts have been tested. short scalps will offer good opportunities, after the news or numbers.
and no need to predict direction, let market show you the direction.
note: secondary fundamentals interplay, notice that AUD has current account, RBA announcement and cash rate, BOJ monetary policy, and Haldane from Britain is also speaking.
Why these are highlighted, you may ask. Reason, AUD is related to CAD by their commodity relationship, japan is related to CAD by oil and AUDJPY trades, and Brexit has caused britain to need a source of oil, hence GBP may have start to see a higher correlation for CAD because of their requirement for oil. These interplay in 2ndary relationships can cause either noise or extra momentum for USDCAD.
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