Jump to content

Trade of the Week 03/05: short USD/CAD


Recommended Posts

IG market analyst, Axel Rudolph FSTA, looks to go short USD/CAD with a stop-loss at $1.2970 and a target of $1.2720. He also looks at last week’s trade, which was short EUR/GBP.

 

 

 

 Axel Rudolph | Market Analyst, London | Publication date: Tuesday 03 May 2022 

Short EUR/GBP

Hello and welcome to the Trade of the Week on Tuesday the 3rd of May.

Last week, we went short EUR/GBP at £0.8425 with a view of it heading lower. We had a downside target at £0.83 in mind and a stop-loss at £0.8515.

If we look at the daily chart, we can see that we have indeed come off from last week's levels and we briefly went up to £0.8467 but we didn't get stopped out because our stop was placed slightly above the March high and we are now still heading lower.

Now, the £0.83 target was perhaps a little bit ambitious and what we could do on that trade is maybe raise the target level to £0.8360 where the orange line comes in, the 55-day simple moving average (SMA), and perhaps lower our stop from £0.8515 to simply break even at £0.8425, which is above yesterday's high. Therefore, if we get stopped out, at least we have no loss.

USD/CAD

This week we are looking at USD/CAD.

Now, as we all know, the US dollar is trading at multi-year highs against a lot of different currency pairs. What is interesting on the USD/CAD chart is that we have risen very sharply with regards to the US dollar compared to the Canadian dollar, but we stalled last week around the March high at $1.29 and we are likely, given the chart pattern, to do so again this, or next, week.

So, because we failed back in September and December as well as in March between $1.29, basically, and $1.2964, the trade is to go short against the trend with a stop-loss level above these highs and a view of returning back down and retracing lower towards the lows seen last week. This was made to $1.2720 or so. So we could go short.

I wouldn't go short just now, but wait for the market to go a little bit higher because in the short-term this looks likely to be the case ahead of tomorrow's Federal Open Market Committee (FOMC) meeting.

So this week's Trade of the Week is to go short USD/CAD at $1.29 with a stop-loss at $1.2970 and a target at $1.2720.

 

trade of the week.PNG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,601
    • Total Posts
      96,965
    • Total Members
      44,172
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Sparky
    Joined 03/12/23 21:47
  • Posts

    • Here we go!!! Gold making record highs 🚀🚀🚀 The level to watch going forward is 2133 👀, which is the weekly cyclical resistance. We need a close (preferably 1%) above this level at the end of the week before moving any higher. High volatility is to be expected throughout December. 🤑
    • Stock market analysis and trading strategies: NASDAQ 100, Apple (AAPL), Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT), Meta Platforms (META), Netflix (NFLX), Alphabet (GOOGL)  Stock Market Summary: Wave (i) of v) of 1 of (5) of 1) as a general count for most stocks, however this will be the Elliott wave count for the SP500 and the Nasdaq 100. Some stocks will make new highs, and some won’t, but they will still have the same wave count and I will explain this in today’s video. That said there are stocks like Tesla that are different, however they will move the same on an intraday basis, just with different Elliott wave counts. Trading Strategies: Long trades triggered on AAPL and AMZN Video Chapters 00:00  NASDAQ 100 (NDX) 02:52 Apple (AAPL) 06:20 Amazon (AMZN) 08:10 NVIDIA (NVDA) 12:29 Meta Platforms (META) 14:52 Netflix (NFLX)  1620 Alphabet (GOOGL) (sorry missed Google) 16:38 Microsoft MSFT 18:17 Tesla (TSLA) 19:41 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge.com  #stocks #investing #trading     
    • Thanks. A really interesting video and some interesting statistics and analysis. I haven't the time to go back and analyse whether a strong November increases the chance of there not being a Santa rally, although one of the slides highlights that the negative Santa Rally years were tied with poor November returns for the market such as 2000, 2008 etc which seems a contradiction.  Would I short and back against it happening? When it occurs in over 80% of years... absolutely not.  The Santa Rally – Christmas Growth in the Stock Market. (moneysandi.com)
×
×
  • Create New...
us