Sometimes my robot which is purely working on maths and patterns makes a really interesting trade. Today, at about 2:30am it shorted USDCAD with a target of 80 pips and a 30 pip risk it looks like a great trade.
It’s as if the robot sees in the chart the fundamental news that the dollar is falling and oil is getting stronger. The robot scans a lot of currencies.
When oil prices are high, the amount of U.S. dollars Canada earns on each barrel of oil it exports will be high. … Conversely, when the price of oil is low, the supply of U.S. dollars will be low relative to that of the Canadian dollar, resulting in a decrease in the value of the Canadian dollar. (Investopedia).
So with prices of oil rising and the dollar falling this trade makes a lot of sense, although it will take quite a time to come to fruition as the average true range (the amount of movement the currency pair has in the day is only 25 to 30 pips at the moment, so an 80 pip trade could take a few days to come to fruition. So the robot probably won’t be taking profits till Thursday or Friday this week.
However an interesting trade.