USDCAD—pausing

At least I hope it’s pausing after its energetic chug up the mountain in the last couple of days. I’m still long from 1.0256, near the 1.0225 of what I consider the bottom of an Elliott wave two. I took some partial profits at 1.0702 for + 446 pips.

This morning’s high was 1.0781. It has yet to achieve the highs of early November (1.0848/53) so it’s in a tough resistance area. Given the impulsive nature of the move up, which suggests we’re in a third wave, I think it might just make it. Then there’s the September high of 1.0983 and the August high of 1.1125. Whew! The work never stops. If it clears those levels, hooah!

One can expect support at 1.0700, a short-term uptrend line, 1.0597/1.0602 (prior support and uptrend line), and 1.0547 (February low).

Here’s the three-hour 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.