[TW] 12-12-2011 - USD/CAD Long by Justin Pipper

[B]Long or Short:[/B] Long

[B]Entry Point:[/B] Long at 1.0080

[B]Stop loss:[/B] 50-pip stop at 1.0030

[B]Profit target:[/B] First target at 1.0250, second target at previous high (1.0500)

[B]Risk Percentage:[/B] 1.0%

[B]Reward-to-risk Ratio:[/B] at least 3.4:1 risk

[B]Tools used:[/B] 100 SMA, 200 SMA

[B]Trade Rationale:[/B]

There’s a strong technical support at 1.0080 that has failed to break for the past couple of weeks now. Also, I hear that investors aren’t happy with the latest EU Summit. I’m thinking it would be bearish for the comdolls in the next few days. Lastly, economic reports from Canada as well as falling oil prices could weigh on the Loonie.

[B]Trade Adjustment:[/B]

If I get triggered and price goes my way, I will move stop loss to break even as soon as it reaches my first PT. I can even add to my position depending on the strength of the upward movement. If I don’t get triggered, I will remove my orders just before the holidays.

you are right it will be on a uptrend but your second target should be more lower to the 1.03500 level. that will be the end of the abcd patter and that is where the next resistance will be. Also if you use the Fib and go from your second target is located down to the support line you mentioned I think that 1.03580 exit will be around .50 or .618. By the way great move. that means the dollar will continue to go lower.