Forex Trading Money Making | USD/CAD Forex pair | Trading signals #9

Welcome back, traders and true believers of Forex Trading.

Welcome to the McDuck trading family.

In our previous post, we traded Great British Pound / United States Dollar Forex pair with a Tools Trades Power 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, one of the most popular Forex pairs out there.

Our broker for this trade is going to be IQ Option my favourite trading platform so far. I have successfully made many trades with them and I am very satisfied with the service they provide.

First of all, let's take a look at the chart of our Forex pair:

The market was volatile, there are strong indicators that show a mix of a bullish and bearish trend. In this position, it can be hard to get a good idea of what would be the right decision. Because of that, we should definitely do some further analysis of 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 four 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. Capacity Utilization Rate (CAD)

2. CPI m/m (USD)

3. Core CPI m/m (USD)

4. Federal Budget Balance (USD)

Capacity Utilization Rate (CAD) - A quarterly released report from Statistics Canada, it shows us the percentage of available resources being utilized by manufacturers, builders, mines, oil extractors, and utilities. It's a leading indicator of consumer inflation - when producers are nearing full capacity they respond by raising prices, and the higher costs are usually passed on to the consumer.

CPI m/m (USD) - A monthly report from Bureau of Labor Statistics, this one tells us the change in the price of goods and services purchased by consumers; Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;

Core CPI m/m (USD) - A monthly report from Bureau of Labor Statistics, this one tells us the change in the price of goods and services purchased by consumers, excluding food and energy; Food and energy prices account for about a quarter of CPI, but they tend to be very volatile and distort the underlying trend. The FOMC usually pays more attention to the Core data - so do traders;

Federal Budget Balance (USD) - A monthly report from the US Department of the Treasury, this one tells us the difference in value between the federal government's income and spending during the previous month;

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 selling position. Oscillators are pointing us in the buying position, whereas the Moving Averages are pointing us in a strong selling position.

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

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 selling 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 make 3.000.07$ which is our second most profitable overall trade so far and the most profitable trade with regular signals!

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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