Close Open Orders: 2008-09-18 13:52
The US Dollar rallied against the Canadian Dollar yesterday, taking the pair all the way up to 1.0800, where it briefly broke above. Unfortunately, it the pair couldn’t quite reach my short entry orders at 1.0810, before dropping all the way back down below 1.07 within the next few hours. Waaaaahhhhh!! So, I missed the trade and a nice profit.
Close open orders. No trade.
The pair is currently consolidating around 1.07 at the moment, but it looks like we may see a move down once again as financial fears continue to plague the minds of everyone and as oil finds a bid during all of this craziness. Stay tuned!
Trade Idea: 2008-09-16 12:05
It looks like the market is setting up another range play set up on USD/CAD. I was a bit early last time, but fortunate enough to close out with a small profit. Will the top hold again around 1.08?
Pretty simple play today as this idea is mostly chart based. We can see the pair rallying to the top, mostly as commodities and oil continue to fall. Stochastics are near overbought levels, meaning that the currently rally may be losing steam.
Fundamentally, we have an interest rate decision in the US coming up today, and futures markets are pricing in a 25 basis point cut. If the FOMC decides to cut, we could see a short term fall in USD. After the decision, we do have plenty of economic data coming out the rest of the week, but I think the current financial crisis and oil will continue to push this pair one way or another.
So, there’s a lot going on, but I think I’m going to see if traders are waiting to sell at the top of the range. I am going to:
Short USD/CAD at 1.0810, stop at 1.0910, pt1 at 1.0710, pt2 at 1.0560
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.