USDCAD—fighting resistance

I'm still long from 1.0258. The pair is still moving sideways and is fighting some strong resistance with a fib confluence and a price resistance zone. In addition, on the weekly chart below you can see a downtrend line from March 2009 coming in at 1.0491 and the shorter-term downtrend line from May coming in at 1.0537. The pair will have to battle resistance up to 1.0677. If it clears that then price moves could become interesting. The low Friday was 1.0351 and had I been trading I would have probably added at that price.

Support is provided at 1.0400/0392 (fib confluence, polarity, 200 daily SMA), 1.0350, 1.0320 (10 and 100 daily SMA), 1.0298, 1.0274, 1.0205, 1.0152, and 1.0075. If the pair can climb above 1.0677 I'll post more resistance levels.

Here's the weekly chart. My trade doesn't show because I use a different charting package for longer term charting.










© 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.