USDCAD—Weekly chart

You can see on the weekly chart I ran on Saturday that the pair broke its long-term uptrend line from late 2007. This isn't good. In addition, the climb from .9058 to 1.3065 was 4,007 pips. The retracement of that climb to the Friday close of 1.0193 is 71.6%. Ouch.

Support may come in at 1.0155 which was the low last week. The pair may range for a while in between this and 1.0209. The range is best seen on the one- or three-hour chart. Not a great range as to potential pips but at the top and bottom the stop can be tight. I may try a trade.

If the pair continues to drop there may be a bounce at the 75% retracement or 1.0060. Otherwise, expect support to come in at .9819, then .9711. On the up side, is 1.0205 (its high so far today is 1.0209), 1.0251, 1.0322, 1.0444, and ha-ha, 1.0500. Well, it could make it.

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.