Wednesday, March 31, 2010

USDCAD—hammer after drop

The pair has dropped to 1.0150 this morning which is slightly below yesterday's low of 1.0157. On the hourly chart, it just completed a hammer. If it can stay above the hammer's low of 1.0150, then it should rally. There's positive divergence on the hourly chart. Going long here, give this pair's skanky performance lately, probably means taking profits in the 1.02 area

I have three small long positions: 1.0115, 1.165, and 1.0190. Obviously, the last one is under water a bit.

Support is at 1.0152/48, 1.0137, 1.0098, 1.0061, and 1.0005. Resistance is at 1.0217, 1.0268/82, 1.0304/22, and 1.0443.

Here's an hourly 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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