One central bank
is cutting ( Bank of Canada ) and another is talking about hiking ( US Fed ). So nothing complex here. Buy the one which is talking about hiking ( well here we are saying "Talking about" ;) because who knows if they will ever be able to do that :) ) against the dovish CB
. Now the eternal question of optimum entry which defines our risk comes out because it is often observed that it is tough to get into the strong trend with ideal entry. For that reason, we will start very small at current level buying USD/CAD
and hopefully expecting other better fill lower near 1.2900.
UPDATE: Taking partial profits against our fills from 1.2910 and 1.2932 at 1.2950. Will look to buy it again if falls near 1.2900 hoping that Yellen pushes it above the yesterday's high of 1.2960 while speaking later today at 2:30 PM EST. What's intriguing is USDCAD's inability to break higher today so we will be cautious if 1.2900 breaks and will wait for better entry near 1.2850 / 1.2800.
UPDATE_2: 1.3000 done - 90+ pips