USDCAD—correcting

After touching a high of 1.0679, USDCAD fell to a low of 1.0554 this morning where it looks as though it's trying to base. 1.0554 was the .382 retracement of the move up from 1.0352 and the retracement looks like a three-wave retracement on the hourly chart. 1.0570 is a confluence zone as well so that adds to the area as support. As a result I added a long at 1.0586. My other longs are from 1.0389 and 1.0426. A definitive push above 1.06 is necessary in the near term to keep this pair on track for going higher.

Resistance is at 1.0610, 1.0679, 1.0719 1.0781, 1.0855 and 1.0988. Support is at 1.0554, 1.0463, 1.0395/75, 1.0366/52, 1.0334/27, 1.0305, 1.0283/75, 1.0150, 1.0100 and 1.0045.

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.