Monday, February 22, 2010

USDCAD—weekly chart

How sweet! Just like on the weekly GBPUSD chart, there's a star for last week on this chart as well. Another pair where there's a stalemate between the bulls and the bears. These two pairs tend to move opposite of each other so if there's going to be a rally in the GBPUSD then USDCAD will probably decline.

On the weekly chart you can see the pair is in a channel but not quite near the bottom. Support is at 1.0238/98 where 1.0298 is the uptrend line coming in from the 2007 low and 1.0238 is the bottom of the channel. More immediate support is at 1.0370, the low so far today. I will probably look for long positions if it approaches those levels. Resistance is at 1.0400/07/21, 1.0498, 1.0530 and 1.0593/0600.

Here's the weekly 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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