Trade Closed: 2007-04-11 08:40
The second half of our open short position reached the adjusted profit target at 1.1460 during the late morning Euro session. This offsets the small hit we took with the first half position and we came out with a small gain of +10 pips.
1st half: -10 pips
2nd half: +20 pips
Total: +10 pips
Trade Update: 2007-04-10 23:40
No pick for tonight ahead of the FOMC Minutes tomorrow to avoid event risk. We will continue to watch our open position on USD/CAD in which the current ask at 1.1475. I still feel there is a short bias on the pair with the positive fundamentals out of Canada and with the potential for oil prices to rise with the current limits on oil refinery capacity. We will leave our exit orders as is. Please stay tuned for updates on this trade. Good luck!
Trade Update: 2007-04-10 12:16
The markets have been trading in a tight range today and our position in USD/CAD has been see sawing back and fort between 1.1480 and 1.1460. We will adjust our profit target to 1.1460 (bottom of todays range) and reduce our risk by adjusting our stop loss from 1.1520 to 1.1510. Stay tuned for updates.
Trade Update: 2007-04-10 08:20
The pair seems to have gone with my short bias as we were triggered during the Euro session to short at 1.1510 to open up half of our position. Unfortuantely the stop was too close at 1.1520 and was whipsawed out for -10 pips. For those of you who re-entered you should’ve caught a nice 40 pip move down. The second half of our position was triggered at 1.1480 and met resistance at 1.1470. I feel confident that the support broken at 1.1485 has turned into resistance, so we will hold but please adjust your profit target on this open position to 1.1450. Stay tuned!
Greetings my friends! Let’s kick the tires, light the fires, and do some Forex trading! Huh? Sorry, just a little excited because it seems like it was a long weekend, didn’t it? Well, we’ll get this week started by taking a look at USD/CAD.
A few moments ago, we saw a broad dollar sell off on speculation that China may retaliate after reports the the US government plans to file complaints to the WTO on copyright piracy. This may play onto my idea that we will continue to see USD/CAD sell off as the US economy worsens and that traders may continue to place bets on oil as demand may rise during the next few months. So I see a short bias on the pair, and look for a short play if the pair drops below the previous lows. Here’s a trade idea:
Short half position USD/CAD at 1.1480, stop at 1.1520, pt at 1.1425
Short half position USD/CAD at 1.1510, stop at 1.1520, pt at 1.1465
Please remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.
This trade may take longer than a day to reach profitability, so stay tuned for updates. Good luck and good trading!