Our first tracked trade finished in the red. The USD/CAD was trading in a tight range and then broke downward today on the back of an oil rally and overall dollar weakness. Unexpected cold weather in the U.S. and Europe is sending oil to multi-month highs.
The 1-unit long USD/CAD trade opened on Tuesday (January 5, 2010) around 3 AM at 1.0372 hit our stop-loss of 1.0320 at around 2 PM Wednesday for a 52 pip loss. This brings our account to $94.80.
Click on image to see Full-sized chart.
The USD/CAD is still oversold and sensitive to a reversal; however, a new trade will only be considered if either the pair reaches the multi-month low of 1.0205 (which would start to make the Canadian central bank uncomfortable) or there is a major shift in market sentiment due to the U.S. jobs data coming out on Friday.
Oil has also closed higher 10-days in a row, even though data today showed supplies were up. I believe this “cold weather” theme is not going to hold prices at such elevated levels for long.
Now, we’ll wait for the U.S. payrolls data to come out before opening a new official trade. The jobs data will set the tone for the next few weeks.
Stay tuned as more trades are put on deck and trade recommendations are sent through StockTwits and Twitter.
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I was also long USD/CAD. I don’t think this oil rally is going anywhere. God damn speculators! lol