JLS: USDCAD Monthly Price Fluctuation Trading - 200 PIPs

Average monthly price fluctuation, 200 PIPs
Current monthly bands/ceilings, 1.3200-1,3400
Current rate, 1.3300

Trading Strategy:

Stop loss must be above 1.3400
Short at 1.3200-1.3400 (current 1.3300, 100 PIPs below 1.3400)
Target, 200 PIPs (1.3000), plus price correction, currently 100 PIPs and more if short made above 1.3300)

Comment:

Comment:

RBA, BoC and the ECB are projected to hold the current interest rate. Despite of slowing inflation risk, the BoC is projected to hold interest rate at 1.75 %. Therefore, long JPY-pegged pairs resumed and will be resumed.

The weigted rates to USD-pegged pairs, CHF-pegged pairs and EUR-pegged pairs are in harmony and sligthly mixed therefore risk on prices adjustment may not exceeding 100 PIPs price elasticity.

Comment:

The Bank of Canada kept its benchmark interest rate steady at 1.75 percent on January 9th 2019, as widely expected. It remained the highest rate since December 2008. Policymakers said more interest rate hikes will be needed to keep inflation into a neutral range of 2 percent target and that the pace of those hikes will depend on factors including developments in oil markets, Canadian housing market and global trade. The Bank Rate and deposit rate were also left unchanged at 2.0 percent and 1.50 percent, respectively.

Comment:

Economic activity is seen expanding at a solid pace, albeit somewhat slower than in 2018, and the job market is expected to remain strong. Recent declines in energy prices will likely push headline inflation further below the FOMC longer-run goal of 2% for a time, Fed Chair Powell said in his Semiannual Monetary Policy Report to the Congress. Fed Chair added that over the past few months some crosscurrents and conflicting signals were observed. Financial markets became more volatile and financial conditions are now less supportive of growth. Growth has slowed in some major foreign economies, particularly China and Europe. And uncertainty is elevated around several unresolved government policy issues, including Brexit and ongoing trade negotiations. The Fed held the target range for the federal funds rate at 2.25-2.5% on January 30th 2019.

Comment:

I already run my following trades on:

Long USDJPY
Long CADJPY
Long NZDJPY
Long AUDJPY
Short EURCAD
Short EURNZD
Short EURAUD

For interdays 50-150 PIPs
For monthly price fluctuation 200 PIPs, plus existing price corrections

Comment:

Short USDCAD at 1.3339 stop loss 1.3430 target 200-300 PIPs