Wednesday, September 3rd 2014
Broke my first rule today. For good reason… GBP/USD is not trading anywhere near pivot level today after the precipitous drop yesterday. Turned to USD/CAD to see if the concept applies to other pairs as well.
Trade #1 – Short USD/CAD at 1.09033
Entered a short trade at this level after pivot was broken to the downside around 6am ET. Price was constantly under pressure until about an hour before BOC Rate Statement at 10am. Bank of Canada extended the interest-rate pause to four years and stayed neutral on his next move. Governor Poloz cited “slack in the economy that will keep inflation in check”.
Price dropped to S1 and pushed below it briefly when I exited the trade for +28 pips profit.
Wouldn’t say today’s trade is good as I did not actually realize there’s BOC statement at 10am but I’ll chalk this one up to luck and take the profit 🙂
News Alert
BOE and ECB tomorrow. Expect huge volatility. There’s US ADP and unemployment claims data as well to boot.
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