Trade of the week: long USD/CAD
IG’s Chief Market Analyst, Chris Beauchamp, looks at going long USD/CAD around C$1.3480, with a stop at C$1.3400 and a target of C$1.3650.
(AI Video Summary)
Discussing previous EUR/USD trading outcome
This week's "Trade of the week" is presented by Chris Beauchamp. In last week's video, Axel Rudolph discussed a successful trade he made. He went long on EUR/USD, which means he anticipated the value of the euro to rise against the US dollar - and it did. He closed the trade with a target price of 1.0944 and bagged a fantastic 100-point profit. It was a big win for Rudolph thanks to the euro's strength and the US dollar's weakness.
This week's trading opportunity
We're now shifting our attention to the currency market once again, specifically the USD/CAD pair. Beauchamp suggests going long on USD/CAD at the current level of C$1.3480, which means he expects the value of the US dollar to increase against the Canadian dollar.
To ensure we're managing our risks properly, we set a stop at C$1.3400 points away from the current level. This means that if the trade doesn't go our way and the value of USD/CAD drops, we will exit the trade to limit our potential losses. On the other hand, if things go as planned, we aim to gain at least 160 points, with a target price around C$1.3650. It's essential to have these target prices and stops in place to make informed decisions.
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