USD / CAD IS READY FOR A FALL?
It might curiosity you to know that US is among the largest shopper / importer of Canadian merchandise. They import crude oil, and different associated merchandise like constructing materials, and so on. These merchandise which run into hundreds of thousands of Dollars are often paid for in direction of the tip of each month. Precisely, the receipt for these merchandise are settled between the 23rd and 28th of each month.
ITS EFFECT ON USD / CAD:
Each month-end, Canadian {dollars} all the time rise in opposition to the US {dollars} as a result of US will purchase foreign money charges usd greenback pound omani rial Canadian greenback euro” alt=”Canadian greenback”>Canadian greenback to pay for these merchandise aforementioned. When a rustic buys one other nation's foreign money (in quantity), the worth of the nation's' foreign money purchased will rise (this time, Canadian greenback).
HOW CAN IT BE TRADED?
Look for a great technical floor and enter a SHORT place on the pair. This rally usually final for 2 buying and selling days!
After the primary + 100pips, lock in some income, and permit the rally to cont., (Other associated pairs are CAD / JPY; CAD / CHF, GBP / CAD, and EUR / CAD). In some months, there might be a really robust strikes that will result in a breakout in a few of these Canadian pairs. This nonetheless relies on the energy of the pairs involved and / or, the response of the market on the pairs in query, particularly if there’s a information launch inside that interval.
If you may have been dropping most of your trades, you need to take benefit of the robust elementary and generate income on the finish every month.
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