On Friday, July 8, the first and second scenarios of entering the market for the USDCAD currency pair, based on the updated statistics of the US and Canadian labor markets, worked.
The first scenario is trading on a rollback with a decrease in NFP with a yield of 0.1% within an hour.
The second scenario is based on multidirectional data on changes in employment in the USA and Canada (based on forecast values) with a yield of 0.3% in the first 15 minutes.
The time zone of the chart is GMT + 2
Today, the USDCAD has again approached the resistance level of 1.305.
Tomorrow, the Bank of Canada will announce its decision on the country's interest rate.
And if it is raised, as expected, then it is likely that the pair's quotations will decline to the level of 1.286, otherwise it is possible that quotations will rise to the level of October 2020 at the level of 1.333.
We, in turn, will be able to work on rollbacks again, relying on the BoC interest rate decision.
How to act?
A few seconds before the publication of the Bank of Canada's interest rate decision on the 15-minute USDCAD chart, we place two pending Buy Limit and Sell Limit orders at a distance of 0.15% from the current price with paired target Take Profit orders at the price level at the time of statistics update.
We act quickly. And if the interest rate:
* if it is increased, then we delete the Buy Limit order,
* will be reduced - remove the Sell Limit,
* will remain unchanged - we delete both orders.
Options exits from the market:
* Take Profit will work,
* one hour after the interest rate update.
We place a protective order below / above the Low /High of the previous day, depending on the direction of entry into the market.
Remember about the spread, the increase in volatility and the rules of money management!
Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.