USD/CAD: Day Trading a Possible Reversal – Trade Canceled

Trade Canceled: 2012-04-03 00:04
Thank goodness I stuck to my trade plan and avoided getting chopped up by USD/CAD’s price action last Friday. As I mentioned, since this was supposed to be a day trade, I’d cancel my open orders if my sell stop order doesn’t get triggered on the same day.

USD/CAD Trade Update

Good thing my fingers were fast enough because USD/CAD actually dipped to my entry area later on before bouncing back up and hitting my stop. I think that was around the time the U.S. printed a weaker than expected initial jobless claims report, which triggered some safe-haven buying.

For now, it looks like the range on USD/CAD is still holding but I might have to look for other setups to play instead. Got any ideas you’d like to share?

Trade Idea: 2012-03-27 07:24

In an effort to clock in one last winning trade for the month, I’m taking a day trade on USD/CAD!

If we take a look at the pair’s 4-hour chart we can see that the pair is sporting reversal signals near the week open (WO) area. Not only am I seeing dojis on the chart, but Stochastic is also in the overbought region at the moment!

Meanwhile, zooming in on the 1-hour chart will also reveal a consolidation at the WO and the day open (DO) area. With a bearish divergence also popping up on the chart, I’m counting on the consolidation to break to the downside.

USD/CAD Trade Idea

Here’s my day trade plan:

Short USD/CAD at .9970 (break in consolidation on the 1-hour chart), tight stop at 1.0020, PT at .9920.

If my trade gets triggered and it hasn’t reached the levels I’m aiming for by the end of the day, I’m planning on closing all positions. If you’re thinking of taking this trade with me, make sure you practice proper risk management and check out our risk disclosure.

I’m going to watch my day trade closely though. Not only are investors worried about economic growth of China, euro zone, and the U.S., but word from my forex friends is that the BRIC are refusing to follow the sanctions against Iran. If this is the case, then oil prices could go down and weigh on the Loonie.

On the other hand, some are also saying that the selloff might be overdone for the week and that we might see the high-yielding currencies rally against the dollar.

What do you think of my trade idea? Will USD/CAD drop today, or will we see a continuation of yesterday’s price action? Don’t hesitate to put in your two cents!

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Good luck in your trades this week, buddies!

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  • Albert Nel

    The 76% Fib from the 1.0035 high to the 0.9909 low… aka parity… is holding like a legend.

    The H1 candles are rejecting it so as far as technical analysis goes, I’m in! See you at the bottom 🙂

    • happypip

      Yeah parity seems to be holding for now. Do you have a position open already? It hasn’t reached my orders at .9970 yet. 🙁

  • Antonioestevan

    I have a open position in 1.0066 with sl -35 and tp +100.
    Good luck

    • Antonioestevan

      At this moment (with 20 pip of profit) i’m moving my SL to my sell price (1.0066) 

  • YH

    Is it consider not valid as it already hit your SL before the entry price.

    • Antonioestevan

      I’m looking at support and resistance

    • happypip

      Yep, already canceled my open orders. Risk is still very much off these days! 

  • Abbi

    I would put long on USD/CAN.  the rcurernt price of 0.9970 is very high and it should go down to above 1.000. We know that the Oil price is going down and the loonie is always tied with the price of oil as well as the loonie is over priced.

    I am just knew to FRX trading  and I am using my personal experience


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