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Short EUR/CAD - May 11, 2012 - Add To Position

Following the trade on May 2nd, we are short EUR/CAD around 1.3000.

Add to the position: Short EUR/CAD around 1.2850, move down initial stop to 1.3020, keep Take Profit around 1.2500.

Fundamental:

- Today, Canadian employment figures show greatest jobs increase in 30 years

- Expected: 7,000 new jobs, Actual: 58,000 (8x consensus!)

- Deteriorating European fundamentals, improving Canadian outlook

- Continous shift of funds from Europe to Canada

Technical:

- Finally, the long-awaited breakout

- 1.2951 support shattered

- Next support levels at 1.2884 and 1.2870

EUR/CAD Hourly

Further confirmation of the trade:

- USD/CAD traded a daily high just under its 200-day Moving Average before turning sharply lower.

USD/CAD Daily

Disclosure: I am short FX.

Additional disclosure: I am short EUR/CAD just above 1.3000