USDCAD—stalling again

My last post on this pair yesterday afternoon said I'd add to my long position if it dropped to 1.0520/30. It did do that as I expected but alas, I'm not awake at 1 or 2 in the morning EST and I missed it. So I only have my one long position from 1.0444.

In any case, the pair is still fighting resistance. On the hourly chart, it doesn't look great with the bearish evening star candle formation, forming at resistance. This is the same formation that spelled trouble for the pair last Thursday. I've circled both on the one-hour chart. The close of the current one-hour bar (it just closed at 7:00 AM EST) negates it somewhat since it's a bullish candle but it shows there is a lot of resistance here. I'm also keeping an eye on the three-hour chart. If there's a failure swing, the outlook will dim that this pair can get through the tough1.0580/1.0600 resistance. However, above 1.0520, the uptrend should continue.


Resistance

1.0600
1.0636/44
1.0775
1.0848

Support

1.0520/30
1.0439
1.0413
1.0372/82
1.0250
1.0225/08

Here's the one-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.