Forex Trading Money Making | USD/CAD Forex pair | Trading signals #8

Welcome back, traders and true believers of Forex Trading.

Welcome to the McDuck trading family.

In our previous post, we traded Australian Dollar / United States Dollar Forex pair with a Tools Trades signal, if you missed it, make sure to check it out!

Today our Forex pair of choice is going to be the United States Dollar / Canadian Dollar, this is a very popular Forex pair, due to large amount of cross border trading that occurs between the United States and Canada.

We are going to be using IQ Option as our trading platform, I highly recommend that you try it as well, it is my favourite platform and I can't say enough good words about it.

Let's analyze our Forex pair before we get into the trade, and for that, we are going to start with the Fundamental analysis.

Open up the Forex Factory Economic calendar and let's set it up so that it only shows relevant news.

We only need the information associated with the United States Dollar / Canadian Dollar and as such everything else would be redundant.

There are six economic events today that are going to influence our Forex pair and half of them are going to have a medium impact on the market.

1. Core Retail Sales m/m (CAD)

2. Retail Sales m/m (CAD)

3. Flash Manufacturing PMI (USD)

Core Retail Sales m/m (CAD) - A monthly report from Statistics Canada, it is about automobile sales. They account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends;

Retail Sales m/m (CAD) - Another monthly report from Statistics Canada, this one tells us the change in the total value of sales at the retail level; It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity. Taking that in consideration this is going to be one of the major reports we are going to be looking at.

Flash Manufacturing PMI (USD) - This report is released by Markit, it is a monthly released report as well, this one shows us the level of a diffusion index based on surveyed purchasing managers in the services industry. It's a leading indicator of economic health, as businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

Now let's move on to the Technical analysis and see in which direction are we going to take our trade.

At the moment we are looking at a semi-neutral buying position. Oscillators are pointing us in the buying position, whereas the Moving Averages are being in a neutral position, however, as you can see the distribution of indicators is favouring the selling position.

While we can be moderately confident that a buying position is a right call, we should keep in mind that certain volatility could be expected, due to the economic events on both sides.

Let's see if we can extract some more information from the chart below.

The market was pretty stable, with some levels of resistance being present before a bullish trend started to emerge. Considering the presence of resistance, I would aim to close the trade earlier and avoid a possible bearish trend emerging after a period of resistance.

It is time to get a trading signal from Tools Trades and get this show on the road. A good trading signal could clear up any uncertainties that we might have and steer us in the right direction.

Don't forget to use the promo code #SHIVINVEST when you sign up for a Tools Trades account in order to receive additional free trading signals.

The signal we generated from Tools Trades went well with the research we did before and told us that a buying position would be optimal for this trade.

Our research paid off in the end and thanks to the trading signal from Tools Trades we were able to break our previous record and make 1.326.17€!

That is everything for today, feel free to check out the video below on this topic, stay safe and I will see you soon with more tips and tricks, trading signals and guidelines for Forex trading!

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