USD/CAD – Close Trade

Close Trade: 2009-02-12 13:17

It looks like risk sentiment is over powering technical analysis as concerns of the revised stimulus plan will fail is being priced into the markets. Traders are moving money back into safe haven plays and out of “riskier” assets like high-yielding assets, commodities, and equities. So, I’m gonna get out, take a small hit, and look for opportunities else where.

Close short position at market (1.2510).

Total: -110pips/ -0.62% loss

So, a small hit today. Live to trade another day, right?! HeeHee. Stay tuned as I’m watching for new opportunities in AUD/USD to go short!

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Trade Idea: 2009-02-11 17:50

comdollsff

Hello Forex Buddies! Watching a short-term, technical setup on USD/CAD today as it looks like the pair failed to break 1.25 once again. Let’s take a look.

I have the 4 hour chart up, the pair has been rangebound, and we can see a little “triple top” action at 1.2500. Sellers seem to have that area locked down, and we may possibly see a move back down to the rising trendline drawn. Stochastics are also in overbought territory and turning lower, indicating exhaustion and possible reversal back to the downside.

A quick look at risk events today, and we saw Canadian and US Trade Balance both worse than expected. Oil prices fell again as inventories continue to rise on slowing global demand. My question now is, “how much longer will rising inventories and weaking demand continue to be priced into oil and the Loonie?” Well, according to price action at 1.2500, the sentiment maybe shifting, at least in the short term. Also, the Loonie still has the interest rate advantage over the Greenback.

So, I am short biased for now for mostly technical reasons. My stop will be above the highs of the triple top, and I will target the rising trendline and the previous lows just above 1.2000. Here’s what I’m going to do:

Short USD/CAD at 1.2400, stop at 1.2575, pt1 at 1.2225, pt2 at 1.2050

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

The big news for the rest of the week is US Retail Sales data and weak numbers could temporarily weaken the Greenback. Stay tuned!

  • kliopp

    im with u in this again,last one a got some good pips thanks to you.good luck and thanks for share your idea.

  • bilal_shirazi

    In.. good luck everyone

  • kliopp

    im with u in this again,last one a got some good pips thanks to you.good luck and thanks for share your idea.

  • bilal_shirazi

    In.. good luck everyone

  • Stfn

    You entered a STOP Order? Or you have bought from the market, direct?

  • Stfn

    Sorry, direct sell from the marke, because you are short.

  • bilal_shirazi

    Oil is dropping.. not good for short positions on this pair.

  • Stfn

    You entered a STOP Order? Or you have bought from the market, direct?

  • Stfn

    Sorry, direct sell from the marke, because you are short.

  • bilal_shirazi

    Unlucky..

  • bilal_shirazi

    Oil is dropping.. not good for short positions on this pair.

  • bilal_shirazi

    Unlucky..

  • fed

    I also had .4% loss, right after I closed it, the pair went lower damn!!!

  • fed

    I also had .4% loss, right after I closed it, the pair went lower damn!!!

  • Gusmeran

    I was lucky to enter stop @ 1.2560 (not caught for 12 blessed pips :-)))

    Now I’m still in, waiting for 1.2260

  • Gusmeran

    I was lucky to enter stop @ 1.2560 (not caught for 12 blessed pips :-)))

    Now I’m still in, waiting for 1.2260

  • Helltopia

    I let it ride, set my SL and respected it. Now I’m down(!) in profit :)
    Lets call it luck ;)

  • Helltopia

    I let it ride, set my SL and respected it. Now I’m down(!) in profit :)
    Lets call it luck ;)