Close Open Orders: 2009-05-27 14:37
Good afternoon! It looks like I missed out on move lower as USDCAD made its way down lower without a pullback to my entry orders. With the pair currently consolidating around 1.1100 – 1.1150, I have decided to close my open orders and look for another opportunity to short lower.
Close open orders to short at 1.1365. No trade.
I will continue to watch USDCAD for further shorting opportunities as it looks like weak US Dollar sentiment will continue in the short term. Stay tuned!
Trade Idea: 2009-05-26 09:50
Good morning Forex friends! I’ve been away for quite some time, but now I’m back, refreshed, and ready to trade! Last week was all about US Dollar selling. Will we see a retracement and return to that sentiment?
It was all about US Dollar selling last week on rumors of a US credit rating downgrade. Money was pouring out of the Greenback and into stocks, commodities, and commodity currencies. This week has started out with a bit of pull back from that trend, and using the one hour chart, I have pinpoint areas where I like to short if that retracement continues.
There is an area of previous support that was broken around 1.1365, which happens to line up with the 61% Fibonacci area drawn on the chart. If the pair retraces to this area, I’d like to short as this may be an area of resistance. Also, it lines up with my bias that money will continue to flow out of the US Dollar and into currencies with no quantitative easing policies in place like the Canadian Dollar. Also, the “Loonie” moves in correlation with oil as much of Canada’s exports is based on raw materials. Here’s what I am going to do:
Short USD/CAD at 1.1365, stop at 1.1415, pt1 at 1.1315, pt2 at 1.1265
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.