Trade Closed: 2010-10-05 20:37

Bah! I was already up by almost 50 pips when USDCAD decided to break below the support of the range on the 4-hour chart. It looks like US dollar weakness is still the name of the game, even though US economic reports came in better than expected yesterday. Because of that, USDCAD tumbled towards the 1.0150 area after being around 20 pips close to my first profit target.

I guess I'm still pretty bummed out about this trade because I really thought the range would hold. Then again, US dollar weakness has been prevailing for a few weeks already and I think it would be better to simply follow current market sentiment. Time to shake off those bad vibes and focus on coming up with a new trade idea!

Trade Idea: 2010-09-29 04:45

Just like candy, there's just something about Loonie that makes me go back to it for more. But this time, I'm gonna go long USDCAD!

My account suffered a minor cavity when my long CADJPY trade went against me thanks to the worse-than-expected retail sales report from Canada. Boo! But no worries! I think I can use that those disappointing consumer spending figures, along with a handful of others, to reel me in some pips!

Since I wouldn't exactly compare Canada's most recent CPI and retail sales reports to M&Ms, I thought that perhaps the GDP figures for the third quarter won't be any different. So this time, I'm keeping my fingers crossed for not-so-sweet figures to make my day! Don't get me wrong, I'm not going loco for the US economy either. I just think that maybe there won't be enough bears left to weigh down the Greenback which has been under selling pressure for quite a while now.

My friend, Pip Diddy, told me that a couple of reports are due to be released later today and it looks like analysts are giddy for 'em with both forecasts for the RMPI and IPPI higher than their previous readings. But that's okay! If they're right, USDCAD may just dip a tad bit and get my trade triggered!

I'm just hoping that it'll find support at the bottom of the range on the 4-hour chart. See how the price has been bouncing up and down between 1.0220 and 1.0350 for the past month? USDCAD could find support at the 1.0220 area again so I'll go long there. I'm putting my stop below the previous week low of 1.0190.

For my profit targets, I'll be locking in some pips if the pair makes it back to the middle of the range. Then, my next profit target is set at the top of the range, which is 1.0360.

Here's my plan:

Long USDCAD at 1.0220, stop loss at 1.0170, pt1 at 1.0300, pt2 at 1.0350. As usual, I'll risk 1% of my account on this trade.

Any comments? Tips? Hit me up on MeetPips.com!