Aftermath of BOC interest

Summary of Yesterday USD/CAD trade.

Long@1.32406 TP 1.33098 SL 1.31359

The trading yesterday went if nothing else well. We traded USD/CAD and the trade did not go in our favor in the first few minutes but our stop loss was not hit saving us from a large loss. It met support at around 1.31547.  It slowly crawled its way back up to hire then before the interest rate decision announcement.

I've decided to keep the trade open and look for a higher level of resistance in which to close the trade. A local level of resistance from an august 25th high can be found at around 1.3352-1.3405.  If this level is broken and the day closes above it we are looking at the next level of technical resistance at 1.3584


The USD/CAD will continue to be bullish until the US interest rate decision at which point if US increases interest rates it will go up if they stay the same it will drop back down. Trading the USD/CAD is a high risk trade as the Canadian dollar is closely related to commodity prices. With the recent volatility in oil this can add to the unpredictability of the pair.

What was so surprising yesterday was how fast the trade moved after the rate decision. How quickly it dropped was pretty amazing to see. That's why it is important as a low Capital trader to out for the high capital traders. Where they move the market moves typically.

Overall USD/CAD is slightly bullish until the upcoming FOC meeting