Friday, July 29, 2011
Market trend analysis for 29th of July 2011
News from Canada moves the markets
Hi, everyone. I hope you saw what happened today when news from Canada was released. There was a lot of action in various currency pairs as well as oil, but Canadian dollar pairs were affected most. EUR/CAD rose 200 pips. Wow! That’s what we have in mind when we talk about news trading. Data from Canada was pretty negative and there is no surprise that loonie collapsed.
How you could have traded eur/cad pair
Since eur/cad pair is very volatile you had to trade it very carefully. Fortunately the pair was not moving before news and you could comfortably place your long and short stop orders above resistance and below support. 1.3590 would have been a good place for long order and 1.3520 would have been perfect for a short one. As the market decided to go up, your long order would have been opened. You would have probably gotten out of the market around 1.3730 level, following 5 minute chart. Nice catch!
I will comment a little more on today’s price action tomorrow.
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.