Today at 14:30 CET Manufacturing Sales will be released in Canada. The indicator, based on previous month's data, is issued by Statistics Canada. Manufacturing sales let us foresee labor market forthcoming trends and evaluate consumer spending and investment attractiveness. We expect the USD/CAD currency pair to become more volatile.
Let us examine how the instrument is traded on the H4 chart. The price is entrapped in the triangle which has no clear direction. The RSI-Bars oscillator is also in a range. In such a case, the most cautious scheme is to place two opposite pending orders. Let the market itself choose the direction. The most important 1.27082 and 1.24257 levels are confirmed by Bill Williams fractals, Donchian Channel boundaries and Parabolic signals. Two positions may be placed symmetrically: when one of the orders is executed, the second one may be canceled, since the market has already chosen its path. After pending order activation, Stop loss is to be moved every four hours near the next fractal high (short position) or low (long position), following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point.
|Sell stop||below 1.24257|
|Stop loss||above 1.27082|
|Buy stop||above 1.27082|
|Stop loss||below 1.24257|