USD/CAD – Trade Closed

Trade Closed: 2008-12-15 08:22

Good morning! Looks like a great start to my week as my short position in USD/CAD reached full profitability this morning after a few tests of 1.2500 last week.

Second profit target hit at 1.2250.

1st Half: +100 pips
2nd Half: +200 pips
Total: +1.5% gain

So, I think I’m done for the week already…Just kidding! It should be an interesting week as we have the FOMC meeting again this week deciding on the fate of short-term interest rates here in the US. Also, the lack of any action in the US automaker bailout, coupled with more bad US economic data, may pose a hinderance on any short-term US Dollar rallies as well. Commodity prices are still at the mercy of US Dollar price action and global demand, so look for continued a bit more volatility in the “Comdolls” this week. Stay tuned!

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Trade Idea: 2008-12-11 17:33

comdollsff

Greetings! Looks like we have a new short term downtrend forming on USD/CAD. Has the US Dollar rally finally run out of steam? Let’s take a look…

The Loonie has been on a tear since hitting a triple top on the Daily charts, rallying from 1.30 to its current levels between 1.23 – 1.24. Today’s trade balance data from both the US and Canada didn’t help the Greenback out either as US trade deficit grew and Canada posts another surplus.

I have a one hour chart up and we can clearly see a downtrend. I’d like to play this downtrend, but I am going to wait and see if I can get in at a slightly better price. I like the 50% Fibonacci area as it is just below psychologically significant level of 1.2500.

Here’s what I’d like to do:

Short USD/CAD at 1.2450, stop at 1.2550, pt1 at 1.2350, pt2 at 1.2250

Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.

Stay tuned!

  • MonsterTrader

    I can see this trade playing out nicely…this is the stochs are already showing overbought and have crossed at the 38 fib level. Think it’ll still go upto 50? or short now?

    :)

    thanks

  • MonsterTrader

    Just did some hmwr…the daily pivot is 1.2377…right at the 38% fibb level.

    I’m going short, and if it retraces upto the 50% I’ll add another position.

    Thanks for your insight!

  • MonsterTrader

    I can see this trade playing out nicely…this is the stochs are already showing overbought and have crossed at the 38 fib level. Think it’ll still go upto 50? or short now?

    :)

    thanks

  • MonsterTrader

    Just did some hmwr…the daily pivot is 1.2377…right at the 38% fibb level.

    I’m going short, and if it retraces upto the 50% I’ll add another position.

    Thanks for your insight!

  • happypip

    Thanks for the comments MonsterTrader! Looks like my trade is working out nicely, but there might be a return to risk aversion since the auto bailout plan didn’t pass. I may make some adjustments…stay tuned!

  • happypip

    Thanks for the comments MonsterTrader! Looks like my trade is working out nicely, but there might be a return to risk aversion since the auto bailout plan didn’t pass. I may make some adjustments…stay tuned!

  • MonsterTrader

    I got few pips on the short, and lost a few on the way up – still in the green though. And yes its working out as you planned. You are good my dear!

    I’ll stay tuned…

  • MonsterTrader

    I got few pips on the short, and lost a few on the way up – still in the green though. And yes its working out as you planned. You are good my dear!

    I’ll stay tuned…

  • LoboTrader

    happypip: You are THE BEST.

  • happypip

    I don’t know about “THE BEST”…. maybe top 10 greatest of all time… just kidding! but I really appreciate the comments you guys :)

  • hany_egypt

    what a trade happypip ..
    I really appreciate your plans .. Special regards from Egypt. Hany

  • LoboTrader

    happypip: You are THE BEST.

  • happypip

    I don’t know about “THE BEST”…. maybe top 10 greatest of all time… just kidding! but I really appreciate the comments you guys :)

  • hany_egypt

    what a trade happypip ..
    I really appreciate your plans .. Special regards from Egypt. Hany

  • azzure_zerk

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    You made it right.Congrats and hoping that this blog would become top rank blogs.Hoping that you could make another great blogs like this.

  • azzure_zerk

    Great Blog. . This would be one of the best blogs i have read.
    You made it right.Congrats and hoping that this blog would become top rank blogs.Hoping that you could make another great blogs like this.