Trade view /
12 July 2016 at 23:00 GMT
The original Trade Idea
expected EURCAD to drift back to the bottom of its 1.4280-1.4560 range that had contained price movement for the previous two weeks. One of the major risks cited in the trade was if oil prices continued to drop. They did and the stop became very vulnerable on the day the trade was opened.
Fortunately oil prices recovered when a wave of risk-on trades swept through the market and EURCAD found support at 1.4384.
Tuesday's API Crude Stock change report of a 2.2 million barrel build in inventories could lead to another bout of EURCAD strength.
Close the trade at the current market (1.4420) and book a 0.0040 point gain on two-thirds of your normal position size. The final order to sell one-third more at 1.4540 was not filled.
Original trade view parameters
Sell: 1/3 position of EURCAD at market (1.4440); 1/3 position at 1.4480; 1/3 position at 1.4540.
Time horizon: five days.
— Edited by Gayle Bryant