How to trade the CADCHF
Hey traders, how did you do with non-farm payrolls report?
Did it impact any of your trades?
Do you agree with me that the NFP doesn’t have the impact it used to have a few years ago?
I remember those days when the market moved 100 or 150 pips a few minutes after the NFP report… The straddle strategy was the way to go there.
But those days are gone now…
The market doesn’t react the way it used to… Now it just moves a few pips up, a few pips down then it ends up where it al started…
What do you think? do you still take advantage of the NFP report or other fundamental announcements?
CADCHF Trading Plan
Last tuesday I write about my plan to trade the CADCHF… One possibility was to trade from the bottom of the range (which was a very good idea), the other possibility was the breakout of the range.
But it was kind of difficult to trade that breakout because of the NFP report, so I took my entry stop orders out before the news announcement.
It is now trading above that range, and here is my plan to trade it:
The long term market conditions haven’t changed since last tuesday, so please refer to the CADCHF analysis I did last tuesday for that info…
Now, I have two possibilities:
- A retracement back to the ST support level (0.8359), if the market forms significant upward pressure around that level I’ll definitely go long.
- If the market retraces back and we font get a signal around the ST level, we can take the breakout of the previous high (orange line).
I’d feel comfortable taking any of the two possible scenarios.
Now, remember there are no bank tomorrow in the US, so don’t expect a lot of volume, starting today.
What do you think about my trading plan?
Are you going to trade it?
What other pairs are you monitoring?
Share your thoughts