Most securities have been in small ranges today, so I cannot say much regarding daily trends in most of them. However, as always there are some exceptions to the rule. Today the exception was Canadian dollar pairs. If you looked at your economic calendar today you saw that there was very important data scheduled to come from Canada at 12.30 GMT (Gross Domestic Product (MoM) (FEB)). Gross Domestic Product is always among the data that creates big daily trends in securities. When I saw that the data is from Canada I was pretty sure that there will be a move after news is released. Why?
I cannot say exactly why, but I noticed a tendency: when economic news of high importance is released from Canada there are big moves in the market 80 percent of the time. Somehow markets are very susceptible to data from the country. So, there was a move and if you have been reading my post you know how you could have traded it. Today Canadian dollar pairs made some move a few minutes before the release and then retraced. So, had you waited till the last minute and only then placed a buy stop order (in eur/cad or usd/cad) you would have evaded this pre-news movements, which sometimes go in the opposite direction when news is actually released.
In eur/cad your buy stop order had to be at 1.4125 with a stop loss at 1.4113. You would have closed half of your position at around 1.4150 and the second one would be at breakeven now. I hope to comment more about this trading method during the weekend, so if you don’t understand it now, do not be worried. There is still some data from US (Michigan Confidence) which can have an impact on currencies, but I am not going to trade it. No more trades for today. I will write a short post tomorrow. See you on my blog.
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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.