[TW] 6-3-2011 – USD/CAD (Short) by salt-n-pipper

[salt-n-pipper]

USD/CAD | Daily



Long or Short: Short
Entry Point: .9800
Stop Loss: .9900 or the close of the first candle above the trendline
Profit Target/s: .9500 (previous low)
Reward-to-risk Ratio: 3:1
Risk percentage: 0.50%
Indicators used: Stochastic (14,3,3)

Trade Rationale:
Though anti-risk sentiment is weighing down high-yielding currencies lately, I think that CAD will soon get back on its feet when the continuously weaker-than-expected economic data from the U.S. finally takes its toll on the Greenback.

Also, I hear from @Happy_pip and other commodity tweeps that gold, oil, and other commodities are starting to rise again, so I’m betting my pips that a possible resistance at the falling trendline and 61.8% Fib will do the trick for USD/CAD

Trade Adjustments:
My stop is initially 100 pips away at .9900, but I plan to close early if a daily candle closes above the trendline. If price goes my way, I plan on moving my stop to break-even and then adding 0.50% position every after 50 pips (USD/CAD usually has a low average true range). Lastly, I plan to close all positions at .9500.