USDCAD—ranging

USDCAD has been largely ranging from 1.0404 (May 19 low) to a high of 1.0855. It seems to be drifting around the lower part of that range. Even though Canada's central bank hiked the overnight rate to .5 this morning, the decision was widely expected. The impact on price was that it dropped to a low of 1.0423 but since then it seems to be trying to base. As a result, I went long with a tight stop at 1.0460. I took some partial profits at +34 pips and have my stop at breakeven. It's likely that sellers will pile in around 1.0578/81 which reflects the 5/26 low, the .382 retracement of 1.0855 to 1.0413, a fib confluence area and polarity. It's also near the 10-day SMA.

Resistance is at 1.0578/81, 1.0610, 1.0719 and 1.0855. Support is at 1.0423/13, 1.0404, 1.0247 and 1.0100.

Here's the 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.