COVERITLIVE.COM

8:17

DailyFX Analyst - Hi, my name is David Song, Currency Analyst at DailyFX.com. Today, we will be covering the Canadian Retail Sales report for April, and will take a look at price action before and after the release that could set the stage for a USD/CAD trade. Feel free to ask questions throughout today's presentation. I will answer them as time permits. Let's get started.

8:18

DailyFX Analyst - Let's begin by going over the conditions we have laid out to trade the sales report. We’ve chose to focus on the USD/CAD but before we move on, let’s take a quick poll to see what our audience is looking for.

8:19

DailyFX Analyst - For a long Canadian dollar trade, we are looking for a rise of 0.1% or greater, along with supportive price action to enter a short USD/CAD trade. At the same time, if the release unexpectedly falls 0.2% from the previous month, market conditions could favor a long USD/CAD position.

8:19

DailyFX Analyst - Sharp spikes in the exchange rate typically following a market-moving event has the potential to trigger false signals, so let’s take some steps which could prevent being on the wrong side of the market.

8:19	[Comment From greg] do you think this will be a market moving event?

8:21

DailyFX Analyst - Well, the lack of event risk scheduled for the U.S. could potential move the markets following the Canadian data, but as such, we will keep a close eye on the markets for a trade.

8:21

DailyFX Analyst - Alterations in the fundamental outlook paired with the shifts in government policy tend to have the biggest impact on the exchange rate however, swings in risk appetite could lead market volatility through the event, and we will stick with our strategy in order to minimize the risk for loss.

8:22

DailyFX Analyst - Our strategy to trade the given event is found in the last two paragraphs of the Trading the News report, and we will be looking at the 5-minute candle following the release to confirm a market entry on two-lots of USD/CAD. Price action prior to the entry will establish our stops and limits, and if we see the dollar-loonie reach our first target, we will move our stops on the second lot to breakeven in order to lock-in profits, and will leave the second lot open if price action continues to move in our favor.

8:22

DailyFX Analyst - DailyFX: Trading the Canadian Retail Sales

8:23

DailyFX Analyst - Heres a link to the report for those that have yet to take a look at it.

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