U/C moved 300 pips due to weak PMI( below 50 benchmark) and high Unemployment rate (7.2%). I win 150 pips , I kept two LONG positions , you can check my past ideas about USDCAD .
I show on the chart ranges U/C consolidate in the past. U/C sideway in the range 100pips: 1.04-1.05 and 1.06 - 1.07
The problem now is to determine what is the and the retracement level.
1.01 is a very very strong level. U/C cannot break it unless market provides enough strong data such as data last week.
I think 1.01 level will be touched, but not now: that is the problem of the future.
I have two options on the tables now:
Option 1: Range between 1.08 --- 1.09
Option 2: Range between 1.085 --- 1.095
What Option will be chosen depend on US economic data this week.
If US Retail Sales and CPI is negative: Option 1
If US Retail Sales and CPI is positive: Option 2
It's difficult to predict what the move of U/C next week, it looks like something hang on the sky.
Thus, I hit two pending orders:
- Limit order 1: BUY at 1.085 , target: 1.0930, stop loss at 1.08
- Stop order 2: SELL at 1.0942 ,target: 1.0874, stop loss at 1.01
I expect US retail Sales and CPI are positie, I choose Option 2.