Hey comdoll buddies, I’m gonna need your help with this one. Do you think I should cut my losses with my swing forex position on USD/CAD? Or should I hold on?
If you’re wondering what I’m talking about, make sure you take a look at my initial forex trade idea right here.
As you can see from the pair’s daily chart below, price is already testing the long-term rising trend line support and might even be attempting to break lower. After all, the Loonie has been on a tear these days, thanks to hopes of an OPEC oil output freeze and lower expectations of a BOC rate cut, as Forex Gump explained.
Because of that, I’m having second thoughts about keeping this swing position open, worrying that the Canadian dollar might be in for more upside. Then again, data from the U.S. has mostly been upbeat lately and there’s still a strong chance for the Fed to hike rates before the end of this year, which might be enough to keep the Greenback supported.
My stop is still a few hundred pips away from the current price, which gives me room to cut losses if I think that a reversal from the uptrend is about to take place. Maybe the upcoming NFP release can allow me to exit on a quick bounce… or not. Help! Care to share your thoughts?
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