Good morning! Looks like a great start to my week as my short position in USD/CAD reached full profitability this morning after a few tests of 1.2500 last week.
Second profit target hit at 1.2250.
1st Half: +100 pips
2nd Half: +200 pips
Total: +1.5% gain
So, I think I’m done for the week already…Just kidding! It should be an interesting week as we have the FOMC meeting again this week deciding on the fate of short-term interest rates here in the US.
Also, the lack of any action in the US automaker bailout, coupled with more bad US economic data, may pose a hindrance on any short-term US Dollar rallies as well. Commodity prices are still at the mercy of US Dollar price action and global demand, so look for continued a bit more volatility in the “Comdolls” this week. Stay tuned!
Trade Idea: 2008-12-11 17:33
Greetings! Looks like we have a new short-term downtrend forming on USD/CAD. Has the US Dollar rally finally run out of steam? Let’s take a look…The Loonie has been on a tear since hitting a triple top on the Daily charts, rallying from 1.30 to its current levels between 1.23 – 1.24. Today’s trade balance data from both the US and Canada didn’t help the Greenback out either as the US trade deficit grew and Canada posts another surplus.
I have a one-hour chart up and we can clearly see a downtrend. I’d like to play this downtrend, but I am going to wait and see if I can get in at a slightly better price. I like the 50% Fibonacci area as it is just below psychologically significant level of 1.2500.
Here’s what I’d like to do:
Short USD/CAD at 1.2450, stop at 1.2550, pt1 at 1.2350, pt2 at 1.2250
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.