Pair: USDCAD
Timeframe: 4-hour
Long or short: Long
Chart:
Trade rationale:
I saw that the pair made double bottoms a few days back so I waited for an opportunity to go long this week. There was a bullish pennant that formed right below the falling trend line and neckline of the chart pattern so I set a buy order above that at .9950 then aimed for parity.
I thought that it was about time that BOC Gov Carney toned down his hawkishness during the BOC statement since Canada has been seeing mixed economic data. Not only did he retract some of his hawkish remarks, he even said that rate hikes aren’t so imminent now!
Because of that, USD/CAD broke to the upside and hit my target within an hour.
Details:
Long at .9950, stop loss at .9925, pt at 1.0000. R:R = 2:1
I risked 0.5% of my account on this trade so I was able to score a 1% win on this setup!