Market trend analysis for 23rd of July (updated) ~ forex trading news
News from Canada creates volatility on Friday
Hi, everyone. Let me do market trend analysis for Friday. I already mentioned yesterday, that there weren’t significant moves, so I can not show you many ways how you could have traded this or that security. However, news from Canada created some volatility in Canadian dollar pairs. One unpleasant thing was that most of the pairs were moving before the announcement came. When things like that happen you have to go to 5 minute or even better 1 minute time frames to choose best entry points for news trades.
How you could trade usd/cad in the event
Let us briefly look at possibility to trade the news event in usd/cad pair. If you open 1 minute chart in usd/cad you will see that around 11:00 GMT the pair formed a very tiny channel with resistance at 0.9467 and support at 0.9460. As you can see placing orders at both ends of the channel would have been too risky. Therefore, in my opinion the most logical place to put your long order would have been at 0.9470 and a sell stop below 0.9440 level. In this way you could limit risk trading the event. As market went upwards your long order would have been opened and if you wanted to exit at an even number you would have been out of the trade after three minutes. Great!
So much for today!
See also:
EUR/GBP
EUR/CAD
Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.
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