USD/CAD Trading Positions
The USD/CAD pair tells the trader how many Canadian dollars (the quote currency) are needed to purchase one U.S. dollar (the base currency). This currency pair is also known as the "Loonie"
Important assets for USD/CAD
The USD/CAD is one of the three so-called “commodity pairs”, together with AUD/USD, NZD/USD. These pairs are highly correlated to commodity (especially oil) fluctuations.
Gonçalo Moreira explains the correlations that exist between oil, the USD and the CAD: "If Canada is one of the world's largest producers of oil and oil is such a big part of the US economy, rising oil prices tend to have a negative effect on the USD and a positive effect on the CAD. Here you have two nice correlations.”
Related Trading Position Post
Perception is almost everything in trading for Mark Whistler: price, value, news, technicals,... are manmade perceptions. The key for the trade is then to “understands price relativity, and being able to align or separate his perspective with/from the unmanageable expectations of other market participants.”
Many traders are attracted to the FX market due to the wide availability of leverage: the ability to control a trading position larger than your available capital. And arguably for good reason; leverage can be an effective tool in allowing an investor to achieve desired returns on trading capital. Yet leverage magnifies losses and represents a key risk, and indeed our data and experience shows that it is often misused and leads to very large losses.
Using trading positions can tell when a trend is overextended or perhaps beginning. When trading Seasonal Patterns we would like to see the Commercial traders in alignment with the Seasonal Research. Considering the Commercials use the Commodity on a daily basis they most likely have created the Seasonal Pattern in the past.
Overconfident traders usually get in trouble by trading larger position sizes than they’re used to, jumping in again in the same direction after getting stopped out, or overtrading. The first step is awareness. You should ask yourself, “What factors can invalidate my trade idea?”
Currency Trading Positions
The purpose of the Trading Positions table is to provide a glance of USD/CAD as to where our dedicated contributors are currently positioned. You can access the original analysis reports by clicking on each position.