UPDATE: No Jackson Hole-in-one for Loonie
The original trade view expected USDCAD support in the 1.2890-1.2900 area to hold and resume the uptrend supported by a decline in oil prices. Oil prices declined but USDCAD traders ignored the move. In addition, a wave of general US dollar bearish sentiment ahead of Janet Yellen's Jackson Hole speech led to USDCAD selling. Support at 1.2890 was breached and the stop loss was triggered.
The silver lining to this trade idea was yesterday's recommendation to sell 1/2 the position at 1.2920 (breakeven).
The trade was closed for a loss of .0048 points on 1/2 the normal position size.
Buy ½ USDCAD at market (1.2935) Balance 1.2905
Time horizon: 4 days
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more