Stalking EURUSD & USDCAD

Trading Discussion Currencies
1

Hi Guys,

I am looking at these two pairs closely on the 4H hour charts for today. There are many high volatility economic events due to come out that are going to effect European, US and the Canadian economies. Would like to take advantage of them and get into these movements.

EURUSD

Possible entry area at 1.2100

Possible target area at 1.2900

Fundamentals to keep an eye out for this pair for US economy are Continued Jobless Claims, Initial Jobless Claims, Nonfarm Productivity and Unit Labor costs.

While for the European economy ECB Deposit Rate Decision will make a big impact. We are hoping for the Euro to strengthen and/or for the US economy to weaken.

USDCAD

Possible entry area at 1.34500

Possible target area at 1.33700

For this pair the fundamentals to keep an eye out are the same US fundamentals as for the EURUSD trade and again we would like some weakness to come in for the US economy. While for the Candian economy we would like to see the Ivey Purchasing Managers Index coupled with International Merchandise trade to have a strong impact on the economy.

Short Video on PreTrade Analysis

2

Hello @Prav

EUR/USD and USD/CAD has a negative correlation of aprox 80%.

If there are pending high volatility events as you say, I would be hesitant to open 2 long positions on 2 pairs that have a high negative correlation.

Just my 2 cents. Any thoughts?

3

Hi @PanchoVilla84

Yes you are right… if they are high volatility then best to stay away from entering the trade when the news comes out… but if you get a good entry it’s ok to get into the trade after or before the news comes out as the news will be fuel for the trade. So Volatility is a double edges sword where it will be also useful in driving your trade further also :slight_smile:

I may pick the best pair out of the two and get on just one depending on the signal. Also all depends on the fundamentals …

4

Had a nice entry signal on USDCAD.

Short video on post trade

5

Something to think about, we are well beyond the target areas!!

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6

This is when letting some of your positions run comes in handy!! :slight_smile: