USDCAD—faltering

The pair reached a high of 1.0356 before stumbling this morning. It has since dropped back to 1.0276. Since that was near prior resistance it's not a bad price but now the pair has to begin to rally again to maintain a bullish outlook. I have two shorts, one at 1.0135 and one at 1.0190. I've taken additional partial profits on the first one at +140 pips but depending on how the pair behaves over the next hour or so I may add a position. The price target from the symmetrical triangle is 1.0470.

Resistance is at 1.0356, 1.0541, 1.0470 and 1.0681. Support is at 1.0215, 1.0179 (the triangle breakout point), 1.0045, 1.0012 and .9931.

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.