The two long positions I opened yesterday both stopped out at 1.0639 for a loss of -68 and -31 pips. My long position from 1.0256 is still open. I'm cautiously testing this low with tiny positions at 1.0593 and 1.0620. I'm not too concerned about the correction because I think the pair is setting up to move much higher. There are lots of dollar bears out there who say, "Nay, nay," of course. That's why the pair is struggling.
The pair dropped to a low of 1.0571. If it goes below 1.0547 (the Jan. 25th and Feb. 3d low) then there may be a much deeper correction in the making, possibly down to 1.0470. USDCAD needs to close above 1.0766 in order to show it's resuming its uptrend.
Support:
1.0547/57 (Feb 3 and Jan 28 low and this needs to hold to head off a much deeper correction)
1.0500
1.0450/70
Resistance
1.0600/1.0644
1.0771/76/81 (fib confluence, top of triangle and recent highs)
1.0848/53 (November highs)
1.0988 (Sept '09 highs)
No chart for this because I'm having trouble with my new version of Snag-it.
© 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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