USD/CAD – Trade Closed

Trade Closed: 2008-02-26 07:27

We just saw a broadbased US Dollar sell off in the currency markets, most likely on positive Euro data and inflation comments from Eurozone and BOE officials. We were stopped out of our trade.

Total: -50 pips
-1% Loss

.9900 looks like a nice level to take advantage of a short term, support play, but with US PPI and Consumer Confidence coming up, I’ll just sit back for now.

So, we took a loss today, but this was a good trade and a good thing we kept it within our risk comfort zone of only 1% of our account or less… we did manage our risk, right? ;-)

With all of the data, this week is going to be pretty choppy as market movements have been data dependent in recent months. Look for shorter term trade ideas from me to take advantage of market volatility.

Trade Idea: 2008-02-25 15:04

comdollsff

USD/CAD dropped a couple hundred pips this morning as strong commodity demand has brought back risk appetites to the markets. Will it stop at .9950, where it has found support numerous times before, or will it finally break the range the pair has been trapped in for a month?

Commodities (which make up almost half of Canada’s exports) have definitely been in favor on global demand, so we are seeing support in the commodity currencies such as the Loonie.

The 200 pip drop is a very dramatic move, so I think we may see a bit of retracement at the previously tested support areas as shown on the chart. The red trend line is drawn from a daily chart and we can see stochastics showing an oversold condition. Two support lines inter crossing gives us good technical reasons that we may see buyers jump in once again.

Long USD/CAD at .9950, stop at .9900, pt1 at 1.000, pt2 at 1.0050

Remember to never risk more than 1% of your account on any single trade. Please adjust position sizes accordingly.

Good luck my friends!

  • zakwatt

    I have just gone long in this trade @ 0.9956. My s/l is 0.9000 and t/p 1.0022. I will move my stop to 0.9956 if the price goes above 1.0000. I am going with happy Pip, hope I also finish up a Happy Pip. Best of luck everyone.

  • happypip

    Hey Zakwatt, thanks for the confidence! Good luck to ya!

  • baileys

    I’m in as well, although you guys beat me to the punch. Only got in at 0.9970. Still, shooting for 1.0050.

    Btw, HappyPip, I’m kinda surprised that you didn’t go long again on the aussi in the last week or so. May I ask the reasoning behind that?

  • gadamj

    I got in at 57 myself. Thanks happypip, off tomorrow so I’ll ride this horse through the night.

  • zakwatt

    I have just gone long in this trade @ 0.9956. My s/l is 0.9000 and t/p 1.0022. I will move my stop to 0.9956 if the price goes above 1.0000. I am going with happy Pip, hope I also finish up a Happy Pip. Best of luck everyone.

  • Addpips

    I just got in @ 66, misssed 16 pips. See ya at the top

  • happypip

    Hey Zakwatt, thanks for the confidence! Good luck to ya!

  • baileys

    I’m in as well, although you guys beat me to the punch. Only got in at 0.9970. Still, shooting for 1.0050.

    Btw, HappyPip, I’m kinda surprised that you didn’t go long again on the aussi in the last week or so. May I ask the reasoning behind that?

  • gadamj

    I got in at 57 myself. Thanks happypip, off tomorrow so I’ll ride this horse through the night.

  • Addpips

    I just got in @ 66, misssed 16 pips. See ya at the top

  • gadamj

    I got out at 76 because my indicators were all over the place. thanks for the tip. I’ll take my twenty and be happy.

  • mattranze

    Im sorry for interrupt.. But i got couple question for ya. May I know what kind indicators setting u use for usd/cad? I am very interested with your trading skils, and which timeframe u use to see the trend and to enter market.. Tq..

  • zakwatt

    There is always another day.

  • gadamj

    I got out at 76 because my indicators were all over the place. thanks for the tip. I’ll take my twenty and be happy.

  • mattranze

    Im sorry for interrupt.. But i got couple question for ya. May I know what kind indicators setting u use for usd/cad? I am very interested with your trading skils, and which timeframe u use to see the trend and to enter market.. Tq..

  • zakwatt

    There is always another day.