Close Trade: 2008-06-03 09:46
Our short trade was just triggered on comments from Fed Chairman Bernanke, but I would like to close it out now as those comments may shift the US Dollar outlook in the short term.
Close trade at market (1.0065).
Total: -15 pips/ -0.15%
So, we took a small hit, but I feel that sentiment may shift to a stronger US Dollar in the short term.
Trade Idea: 2008-06-02 16:34
Greetings fellow Forex fiends… I mean friends! =P It looks like today’s Greenback rally has setup an opportunity to short the longer term downtrend in USD/CAD.
This is a technical setup as we see the pair is in a downtrend, and after using a Fibonacci tool on the high to low swing from 1.0175 to .9825 areas, the current market is trading in between the 50% and 61% Fibonacci retracement levels. This could be a possible short interest area for traders looking to play the downtrend. Also, stochastics are indicating the current run up may be slowing down.
Fundamentally, the Greenback has been rallying on surprise strength from US data and commodity weakness. Will this sentiment continue to play out? Not sure, but it is good to point out we have plenty of data coming out this week, including the big daddy of all reports: US Non-Farm Payrolls on Friday. So, there should be plenty of volatility this week, prompting me to use a wide stop to make sure we weather the volatility and see if the downtrend resumes.
Short USD/CAD at 1.0050, stop at 1.0150, pt1 at 0.9950, pt2 at .9850
Remember to never risk more than 1% of your account on any single trade. Please adjust position sizes accordingly.
Stay tuned my friends for updates and adjustments. Good luck!