EUR/CAD has been declining since 2020. It lost more than 25,000 pips and is currently putting pressure on the yearly low at 1.34. Since ahead is a cycle of interest rate hikes from the ECB, traders should consider placing a grid of buy limits in order to avoid taking losses.
So, after the breakdown of 1.34, traders should place buy limits, with an increment of 1,000 pips. Take profit on a breakout, either at 1 pip above the first order or after a 1,000 pip movement.
This strategy is called grid trading, which is usually used on cross rates. It involves holding positions that are significant in time and distance. For this reason, we recommend using swap-free accounts, not increasing the volumes in the grid (0.01 standard lot for every $1,000 of the deposit), and monitoring price movements.
Good luck and have a nice day!
