USDCAD—breaking down

My long position from yesterday stopped out at break even. The pair has been sluggish at best and it keeps poking at its lows. Since it broke below 1.0300 this morning, it obviously wants to drop down a bit, perhaps to 1.0234 before it tries another run up. The pair has basically been in a slightly downward sloping range since October (high in Nov. 1.0853; in Feb. 1.0781).

Support is currently at 1.0267, 1.0234, and 1.0208. Resistance is at 1.0362, 1.0443, and 1.0556. The high today, so far, has been 1.0330. One could wait to see if it rallies a bit before shorting or short now that it has broken 1.03. I shorted at 1.0299.

Here's the 15-minute 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.