Trade Closed: 2012-10-19 02:52
Sorry, folks! Looks like I won’t be having back-to-back wins for now as I missed my entry on USD/CAD. After consolidating during yesterday’s Asian session, the pair rallied from the .9770 area without even dipping to my .9750 long entry.
As it turns out, downbeat expectations for this weekend’s EU Summit brought risk aversion back in the markets as Spanish officials insisted that there’s no way they’d be asking for a bailout anytime soon. On top of that, strong U.S. Philly Fed index gave the Greenback an additional boost a few hours into the U.S. session.
At least I got my long bias right this time, huh? Hey, that’s still a plus in my book! Besides, I did exercise an extra ounce of patience as I refrained from jumping in at market. What I probably should’ve done is looked at the 1-hour time frame, which showed another support level right where USD/CAD was consolidating yesterday.
No harm, no foul though! I’ll just try my luck next time. How about you? Were you able to catch this rally?
Trade Idea: 2012-10-18 08:14
Good morning, friends!
Now that I’ve made peace with AUD/USD in my last trade, I’m trying my hand at trading USD/CAD.
The first thing that caught my eye this week is a potential USD/CAD range on the 4-hour chart. If you’ve taken the time to get the major inflection levels from the Comdoll Trading Kit, then you’ll know that the range bottom near the .9750 minor psychological handle is also near the weekly bottom ATR (.9723) as well as the previous week low (.9744).
I also think that BOC Governor Mark Carney isn’t done jawboning just yet. With oil prices slowly inching down and the RBA all but announcing another rate hike this year, I guess it makes sense for Carney to join the dovish bandwagon to limit the Loonie’s gains.
I should be careful though. There have been many times over the past couple of days that risk sentiment overrode all other potential market movers. For all I know, the dollar bearishness could continue until the end of the week and break the inflection points that we have marked.
This is why I’m waiting for more reversal candlesticks and wait for stochastic to cross and go above the oversold area before I jump in. I might place my stop loss just below the WATR and target the top of the range near the .9850 area.
What do you think? Will this setup give me a back-to-back win?
Good luck trading this week, friends!
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