Bad day for Canadian dollar! I would not say that the data that came from the country was bad, but the market reacted in a negative way. Good or bad data presents us with opportunities to trade the market in any direction it goes. I like trading news by marking channels on my charts. I usually take 4 hour candle. The low of the candle is the support, the high of the candle is the resistance. I put a trendline at the high and a trendline at the low. When there are a few minutes left before news I put a buy stop order a few pips above the high and a sell stop order a few pips below the low.
So, news comes and price moves either up or down. One of the orders is opened and I go with the short term trend that was created by the news. In case of Canadian dollar news 0.9680 was the level to go long and 0.9635 to go short (in usd/cad pair). The long order was triggered and we went long. It is always better to go into market with a few orders and close the first one as soon as you see some profit. The second should be kept till some important level of resistance is reached or simply when a pair reaches an even number. So, the first order could be closed at 0.9700 and the second at around 0.9730 just before important resistance.
Usd/cad looks a little bearish for me, so I do not encourage you to keep your long positions in the pair. However, use your own head in making decisions. You can only learn to trade by practicing, limiting risk and keeping to your discipline. I am not going to trade today, but will watch what happened in the market (in the evening). See you tomorrow.
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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.