USDCAD price action is still sluggish although it judged edged below the Aug. 2nd 1.0205 low with a low so far this morning of 1.0197. Yesterday was an inside day where the price action was contained within that of the prior day. While these represent indecision, this one seems to be only a mirror for the general lack of motion in this pair.
I'm still short from 1.0239 (stop is a little better than breakeven) and I may take partial profits soon. The reason is that while the breakout from the triangle was downwards (which is the reason I'm short) there are some conflicting signals on the longer term charts. I'll write about those later. However, the weekly chart (often helpful for determining overall direction when daily action is sluggish) seems to support a possible drop to the uptrend line and then an upward move. That trend line is at 1.0037.
Watching momentum on the shorter-term charts will be important. Here's the weekly chart. My trade doesn't show on this as I use a different charting package for these.
© 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.