[TW] 08-12-2011 Long USD/CAD by Mynameisfez

Trading Discussion
1

USD/CAD: Weekly

Long or Short: Long
Entry Point: 1.0000
Stop Loss: .9700 (minor previous support)
Profit Target/s: 1.0500, 1.1000
Reward-to-risk Ratio: first position - 1.6:1; second position - 3.33:1
Risk percentage: 1%
Indicators used: None
Trade Rationale:

This is a long term trade. On the technical aspect, we see a double bottom with the price testing the neckline already. I will wait for a break above this resistance level at 1.0000 and go long. On the fundamental side, I am thinking that maybe risk aversion will boost the pair back abvoe parity.

Trade Adjustments:

If my first TP is hit, I will move stop on 2nd position to entry. Also no buy if there is no strong break above 1.000.

2

Hi fez.

I very much like this idea. Although i tnk d selloff in oil might be over done. usd cad might have hard time staying above 1.0000.

I have question though. Why buy at 1.0000? Why not a little higher. 1.000 might be bounce level.

3

I like this as well, if you look at the daily chart it seems as though it will consolidate for about a week forming a bullish pennant before it pushes past the 1.0000 mark

4

Interesting idea you have there. The 1.000 level has been hard to break. But with a little good economy news you could do great

5

I expect retrace to 0.9740 first