Tuesday, January 19, 2010

USDCAD—trickling up again

It’s tempting to write this pair off with its ever-more-irritating drops but, as I’ve pointed out in past blogs, until it drops below the October low of 1.0208, there’s nothing new to learn as to longer-term prospects. As a result, I wrote this past Friday that I bought as it was near enough the low that the stop could be tight. This was at 1.0287. I subsequently added to that position at 1.0256. After dilly-dallying around, the original long is up 20 pips as I write and the newer one is up 51 pips. I have moved the stop to just above breakeven on both positions. With the Canadian interest rate decision coming out in the next half-hour, there may be some volatility but I doubt the later position (from 1.0256) will be stopped out. The pair is at some minor resistance now and the candles are throwing off upper shadows, hinting the pair is rejecting higher prices. Here’s the hourly 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.

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