Short USDCAD @ 1.0654, Stop 1.077

This is my first real forex trade after a year minus one day of studying the market and paper trading.

Shorted USDCAD based on the following intermarket observations:

1. Yesterday’s equities sell-off held around S&P at 1050
2. Overnight Asian market seem orderly, not every market followed through, but most did
3. European markets down move were slow overnight until US open
4. But perhaps most importantly, EUR/USD made a higher low with an increasing COT

Basically, as much as the sell-off tries to scare off people, the markets don’t seem to be moving in unison. So it would seem this move (in equities, thus inverse USD) is still a bear trap in an intermediate term bull rally.

Plus this daily chart, Figure 1, for picking USDCAD specifically.

USDCAD daily chart

And this 4-hour chart for trade execution.

USDCAD 4-hour

Size of trade is 1000 unit. Risking about 0.05% of capital with a hard stop at 1.077. Anything above 1.070 would put me on alert though.

Coincidentally, I first got into the forex market by studying the loonie. Let’s see how this first trade performs.

Related posts:

1. Paper trade: Short USDCAD @ 1.0671, Stop 1.0756, Target 1.05761
2. Paper trade: Stopped out of USDCAD short @ 1.0640 for -67 pips, re-entering @ 1.0680
3. USDCAD short target hit @ 1.0581, trying something new–to hold for longer
4. Paper trade: Stopped USDCAD short @ 1.0540 for +131 pips
5. Closed USDCAD short @ 1.06525, breakeven