Whew! I managed to avoid heartbreak by keeping close tabs on risk sentiment and deciding to stay on the sidelines instead.
As I hinted on my Facebook page, I had a nasty feeling that risk was going to be off for the rest of the week last week when eurozone debt concerns started making headlines again.
Of course, this took its toll on the higher-yielding currencies such as the Loonie, as traders hesitated to park their money in riskier assets. With that, USD/CAD flew past 1.0150 and topped close to 1.0300 last week. Yipes!
Good thing that I mentioned in my trade plan that I was going to watch both candlesticks and risk sentiment carefully before placing my entry orders. And I thank my lucky stars and my new year’s trading resolutions I did! Patience and prudence really do pay off, huh?
My first trade idea of the year may not have given me profits, but at least it didn’t put a dent in my account. I still have a chance to start the year strong this week as I scour the charts for a new comdoll trade idea.
Hope you’re having a good trading week!
Happy New Year, my friends! I hope you got enough rest over the holidays because it’s time to start bagging pips in 2012! For my first trade idea this year, I’m looking to short USD/CAD.
Not only that, but the minor psychological handle is also near the 50% and 61.8% Fib levels! It also helps that 1.0150 was a support level last December 28 while we were all packing in all the holiday leftovers.
On the fundamental side of the trade, I’m looking for a continuation of the comdoll rally that we saw yesterday. I know, I know, I’m bummed I missed it too!
Good thing Canada isn’t scheduled to release any economic reports today, so I’ll only keep close tabs on events in the eurozone and the U.S. If the eurozone posts good PMI and CPI numbers and we also see strong factory orders reports from the U.S., then the comdolls might extend their gains. If not, I’ll probably adjust my trade my entry levels.
Right now I’m looking to short at 1.0150 with my stop above the 61.8% Fib, but I’ll also be careful of any game-changers that might come up within the next few hours.
How about you? Are you buying the comdolls too? As usual, don’t hesitate to talk to me over the links or comment boxes below! It would be great to talk to forex traders again after such a long holiday, you know.
Here’s to more pips in 2012!
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