USDCAD—just poked above downtrend line

My long position from 1.0256 is currently up 394 pips (as of 7:16 AM EST) but the pair is still struggling a bit, having just poked its head above the nasty resistance of 1.0626. I took a little off the table at +375 pips but still have most of the trade on. Obviously, my stop is profit stopped at + 210 pips.

If it should continue to climb, the next resistance levels are 1.0747/50, 1.0779, and then 1.0853 which has been the high since it started it’s basing action in mid-October. If it should get beyond that, and that is wildly optimistic, next levels are 1.0988 (the September high), and then 1.1125 (the August highs). At that point, ladies and gentlemen, everyone will be saying what I was saying in October—“The pair was basing.” Then I can say, “Do you think so?” Enough of the imaginary conversations! Support lies at 1.0602/09 (the trend line it just peeked above), 1.0581 (that close? Come on!), 1.0475/90 (polarity), and the positively revolting levels of 1.0360/75, and the why do I keep banging my head on the wall, 1.0256.

Here’s the daily chart:



© Dianne Fecteau, 2010. 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.