Home | Live Now! |  Try it Now
Canada Net Change in Employment (JUN)
 
6:45
DailyFX Analyst -  Hi, my name is David Song, Currency Analyst at DailyFX.com. Today, we will be covering the Canadian employment report for June, 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.
6:45
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.
6:46
DailyFX Analyst -  For a long Canadian dollar trade, we are looking for a drop of 20.0K or less in June, along with supportive price action to enter a short USD/CAD trade. At the same time, if the release comes in-line with expectations and falls 35.0K or more, price action following the release could favor a long USD/CAD position.
6:47
DailyFX Analyst -  Sharp spikes in the exchange rate typically following the Canadian labor report has the potential to trigger false signals, so we will take some steps ahead of the release which could prevent being on the wrong side of the market.
6:48
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.
6:48
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.
6:48
DailyFX Analyst -  DailyFX: Trading the Net Change in Canadian Employment
6:49
DailyFX Analyst -  Price action prior to the entry will establish our stops and limits, and if we see the dollar-loonie reach our first objective, we will move our stop on the second lot to breakeven in order to lock-in profits and leave the lot open if price action continues to move in our favor. However, if the release fails to meet our expectations or if the USD/CAD faces choppy price action following the release, we will not attempt to trade the release as the risks outweigh the rewards.
6:49
DailyFX Analyst -  Here’s a snap shot I took a few minutes earlier, and I have highlighted the key short-term levels that have played out this week, and we should keep these levels in mind as we go through the trade.
6:49
    Page 1  Next >
 
Powered by: CoveritLive  Reader Information