All eyes on the USD tonight. 10:30pm we will see the next round of GDP data.
Currently we are long EURUSD and NZDJPY. These trades are both facing a ‘risk on’ going against the USD.
To hedge our positions and reduce our risk in the market we are looking at taking a position on the USDCAD going in the favour of the USD.
USDCAD – Technical Analysis
The USDCAD is trading on a key trend line at 1.3935. A break below this level will invalidate this set up. A rejection from this level will suggest the USD may regain some strength after the early sell off this week.
Trade Setup: BUY Market Order (Current price 1.3940), stop loss set at 1.3855 and take profit 1.4200.
Stop loss: 85 pips
Take Profit: 260 pips