Tuesday, August 24, 2010

USDCAD—broke upward from triangle

USDCAD, after 16 weeks of forming the symmetrical triangle, finally broke upward yesterday with the breakout point around 1.0480. I would not be surprised to see a retest of this point if it's really going to fly but we'll see. In its climb to touch 1.0664 so far today, it also broke above fib confluence at 1.0586. It looks as though it's heading back to retest that point. I may add another position at that point although I took partial profits this morning at +165 pips. Caution is required because of the slightly negative divergence on the hourly chart.

Resistance is at 1.0664, 1.0700 and 1.0856. Support is at the short-term uptrend line of 1.0550, 1.0515, 1.0480/60. Much below that would call into question the validity of the breakout.

Here's the one-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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