Monday, December 21, 2009

USDCAD—still fighting resistance

This pair was the first to hint at coming dollar strength and I’ve blogged about many profitable, long trades since mid-October. However, it is languishing at best, unable to break through a downward resistance line from August. It touched this line again last week at 1.0747. This was the 5th touch. I wouldn’t expect much from it for the rest of the month unless thin liquidity results in some exaggerated moves. I’m still long from 1.0413 but my second long from 1.0527 profit stopped out at +20 pips on the recent dip.

Here’s the daily chart:

© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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