USDCAD—correcting

In what looks like a corrective move USDCAD has dropped back from its spike high of 1.0745 yesterday to a low of 1.0338 today (so far). The pair should find some support in this area but RSI, representing momentum, is faltering. Next support is at 1.0282, 1.0174 and 1.0089 (the uptrend line). Resistance is at 1.0356, 1.0571, 1.0681, and 1.0745.

Yesterday I took some profits on my long from 1.0135 at +297 pips. I still have a small position left from that trade. My long from 1.0190 profit stopped out at +199 pips. Canadian unemployment news was good this morning and the US Non-farm payroll is coming out in the next few minutes so this pair may see further movement.

Here's the three-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.