Day Trading (Short) the USDCAD - Trade Closed
Trade Closed: 2010-03-09 12:11
Yes! I finally caught a break!
Things worked out perfectly for me, as the pair bounced from the top of the channel and proceed to shoot down. In closed my trade at 1.0263, giving me a decent 37 pip win. In fact, my take profit point would have gotten hit, but I as I said in my trading plan, I was going to close by the end of the European session.
In the end, what matters is following the trading plan. How come? Because as long as I keep true to my trading plan, I will end up ahead and profitable. I might get lucky if I deviate from the trade plan every once in awhile, but eventually it's going to come back and bite me. In the long run, I know that sticking to the plan will lead to profits and success.
Closed Trade at 1.0263: +37 pips
Total: 0.98% gain
Trade Idea: 2010-03-08 21:24
I took a look at the BabyPips' Calendar and it looks like there aren't any major reports coming out during the US session. There also seems to be a slight bias in selling dollars. The better-than-expected results on the US non-farm payrolls report caused risk appetite to surge, which pushed major currencies higher against the greenback.
With the absence of major economic data, Friday's move could follow through today. Still, I'm going to look out for commodity trading. Oil has been hovering above the $80 / barrel point. If oil trading continues its bullish run, it may just boost the CAD to a new monthly high.
On the technical side, I'm spotting a descending channel on the USDCAD. Notice how the pair is making lower highs and lower lows. I'm looking to go short once the top of the channel gets hit, somewhere around the 1.0300 psychological barrier. With stochastics about to go into overbought territory, I think a downward move is likely!
Since the channel is pretty tight, I will keep this trade open only for today. This means that any open positions by the end of the European trading session will closed whether it is losing or winning.
Short USDCAD at 1.0300, profit target at 1.0240, stop at 1.0340
Related Posts:
- Is USDCAD Revving Up for Another Move Down? - Stopped at Breakeven 22:23 03 June 2010
- Ready for a Loonie Comeback - Trade Closed 02:00 12 August 2010
- USDCAD: Waiting to Catch the Break! - Trade Closed 22:21 06 April 2010
- Going Loonie One More Time! - Trade Closed 22:55 23 June 2010
- Shorting the USDCAD at the Fib - Trade closed 21:19 25 February 2010
Archived Comments (10)
Forex Blog: Playing with ComDolls
I have been watching this trade too. Although I'm not sure It will retrace back to the top of the channel. There has been good resistance at the 50 close MA that is has been bouncing off all the way through the channel. To make It to the top of the channel again It will need to cross the 100 MA.
I'm looking for a breakout and continuation of the the down trend.
I hope we are both right. :)
looks like you were very right.
Thanks for the kind comment delvis! The European trading session is coming to a close now, so it's time to close my USDCAD short.
you are within a couple of pips from your mark. Nice trade!
New here, still trying to find my way around.
Good call.
Good call, HappyPips.
i had similar set up too, but at higher entry point. I managed to get 64 green pips this time. All thanks to your analysis.
Good job abudiman! Thanks for the feedback everyone! :)
Nice one! :)
Nice job. Not to question your timing, but why didn't you close at the end of the EU session per your plan? Although it was a "free trade", the CAD tends to retrace after noon.
I appreciate your comments and definitely have learned much from your trading style.
@foricks I did close my trade before the end of the European session. I was just able to this trade idea right after the US trading session. :)