Close Open Orders: 2008-07-22 11:27
Well, we’ve waited for a while, but no luck on our conservative entry point as the pair has already hit parity and bounced back higher. Market sentiment has probably changed for the short term as traders buy back US Dollars today on oil weakness and the proposed bill to support Fannie and Freddie.
It may take a while before the market makes it back up to the sell area, so I’d like to close open orders for now, and revisit this trade idea then. In the mean time we’ll see what other opportunities may be available with the other Comdolls.
Close open orders. No trade.
Trade Idea: 2008-07-17
Hello! We have a a potential short play setting up on USD/CAD as the pair rallies on today’s oil weakness.
Oil drops below $130 a barrel today on a decrease of demand and a surprise increase of inventories. This caused a rally in equites and the US Dollar, potentially giving us a great opportunity to create a short play on the longer term down trend.
On the chart, we can see the pair has been channeling lower, probably as far back as mid-May. Today we see the pair bounce off of support near the bottom of the channel and the psychological price area around 1.0000. Sentiment may continue to take the pair higher, possibly back to the top of the channel, where we may see resistance and the potential for a swing play.
I like the area between the 50% and 61% Fibonacci retracement levels to short, and here’s a conservative trade idea to play my bearish USD/CAD bias:
Short USD/CAD at 1.0130. stop at 1.0175, pt1 at 1.0085, pt2 at 1.0010
Remember to never risk more than 1% of your account on any single trade. Please adjust position sizes accordingly.
Stay tuned for updates and adjustments. Good luck my friends!
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