Tuesday, March 16, 2010

USDCAD—drifting lower to support

The pair has meandered down close to last week's low of 1.0155. (1.0165 as of 7:22 Am EST). It doesn't seem to be in any hurry to drop so we'll have to see if it finds support there. As I wrote yesterday, the pair may range for a while in between this low and 1.0209. It might be OK to try a small long here at the bottom. There is some positive divergence. We're not talking about a lot of potential pips back up to 1.0209 but the stop can be very tight so the risk-reward ratio is OK. (Don't risk more than 15 or so pips on this trade).

Support is at 1.0155, 1.01, 1.0060, .9819, and .9711. Resistance is 1.0209, 1.0251, 1.0322, 1.0444, and 1.0500.

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.

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