For today's trading setup, I have chosen USDCAD; I am waiting for a correction and have placed a buy limit at the nearest support level—specifically, the hourly middle band. The Canadian Dollar is expected to continue weakening, while the US Dollar strengthens.
Looking at USD/JPY today, M15 price action shows a sideways or range-bound pattern. The daily trend leans bullish due to USD strength. I am placing a buy limit order at the nearest support level, along with a stop-loss.
On Tuesday, I traded the USDCAD pair by placing a buy limit order near the lower band on the 15-minute chart. The Canadian dollar has been tending to weaken, largely driven by the strengthening US dollar—a result of high US Treasury yields and expectations of a Federal Reserve interest rate hike.
The USDCAD position is currently floating, with price action confined to a relatively narrow range. The price experienced a sudden drop but recovered quickly; this is evident in the M15 timeframe. I am leaving the current position open without modifying the order.
I am holding my USDCAD position today, though I have adjusted the stop-loss to lock in the floating profit. However, yesterday's US PCE data came in lower than expected, which could potentially weaken the USD.
I am keeping my USDCAD position open today. Despite yesterday's correction, the stop-loss hasn't been hit, and a rebound pattern is currently forming on the hourly chart; hopefully, this will prove to be a valid signal ahead of today's NFP data release.
Today, I’m focusing on XAUUSD. Reports indicate that US Treasury yields are softening, and market expectations for a Fed rate hike have declined due to US labor data coming in weaker than anticipated. I’ve opened a short-term buy position on the M15 timeframe.
