I’ve ignored this pair the last couple of days although I’m still long. About the best that can be said is that my trade from 1.0413 is still up (currently +163 pips) after faltering a bit yesterday. The pair is coiling inside a symmetrical triangle. While it coils, it should be building energy for a subsequent move, up or down. Often, symmetrical triangles are continuation patterns and if we’re talking Elliott Wave (EW), practitioners believe that price continues in the same direction. If one looks at the downtrend since March, one would believe the breakout will be downwards.
However, if USDCAD is basing, as I’ve believed since mid-October, then the breakout would be upwards. Regardless, right now there is nothing to do with this pair except watch it. Here’s the daily chart:
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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.