FX Helpline Weekend Update for August 2nd-3rd

We ended another week with our algo accurately predicting the Loonie's price action. The USD/CAD held a higher low and broke a higher high for the day, as predicted by our system after yesterday's NY session, and closed for the weekend right inside the projected close range.



The Aussie, on the other hand, just barely closed at the top of the projected close range as most interbank price feeds are ending the week within a pip of the range top.

Either way, this is a great example of a signal that shouldn't be taken blindly.

The Australian Dollar and Canadian Dollar are heavily correlated due to the similarities in their countries' commodity-driven economies, so a long trade in the USD/CAD tends to correlate strongly with a short trade in AUD/USD since one is a quote currency and the other is a base currency in their respective pairs.

Whichever pair you chose to trade today, there were plenty of chances to grab an entry that deviated far from the projected closing range, especially with the non-farm employment announcement coming out of the US this morning. If you're not already in the habit of checking the economic calendar every day before making any day trades, this would be a good example of why you should.

Rising tensions continue to put pressure on the equity markets so expect a rise in volatility throughout global markets. Get some rest over the weekend and remember: Keep your targets close... and your stops closer.