Trade Update: 2009-09-18 14:16
Good afternoon! Looks like I caught a bit of luck as we saw a strong USD rally at the open of the European trading session. The pair hit my first profit target at 1.0755, where half of my position was closed.
1st Half: +100 pips
2nd Half: +39 pips
Total: +0.695% gain
The USD rally has been met with resistance since then, indicating that the USD sell off may not quite be done just yet. We’ll just have to wait and see next week, but until then, have a great weekend!
Trade Idea: 2009-09-16 16:59
Good afternoon Forex friends! It’s been a while, but I think there is a short term technical play on USDCAD that I am going to take. The Loonie has gained value during the current broad based US Dollar sell off, and now it’s time for the pair to test previous support…will it hold?
My trade today is a basic technical setup as I have the 4-hour chart up, and we can see the pair is now testing previous support around 1.0650. Stochastics are indicating oversold conditions on both the daily and 4-hour time frames. Have sellers run out of steam? No way to know for sure now, but I’m willing to take a bet on it and that we may see quick profit taking. Also, oil is testing a strong resistance area around $72 that held and pushed “black gold” down to $68 last week. Will it hold again? I don’t know, but if it does fall, the strong correlation between oil and the Loonie may push USDCAD with it.
Again, a simple technical trade today at previous resistance. My stop will be near 100 pips (just under the daily average true range of 130 pips), and I will ultimately target the middle of the range at 1.0900. Here’s what I am going to do:
Long USDCAD at market (1.0655), stop at 1.0555, pt1 at 1.0755, pt2 at 1.0900
Plenty of significant economic data on the Forex calendar – most notably Canadian CPI and US jobless claims and housing starts. Please be cautious and flexible during the morning US trading session. That’s it, good luck and good trading!