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