[TW] 11-6-2012 USD/CAD Short by mero_koli

USD/CAD 4 Hours chart


Long or Short: Short

Entry Point: 1.0297 just under support line

Stop Loss: 1.0375 above broken trend line

Profit Target/s: First PT at 1.0207 previous low swing
Second pt to be determined

Reward-to-risk Ratio: 1.1/1

Risk percentage: 1.5%

Indicators used: Trend line, Japanese candles, resistance and support lines

Trade Rationale: Purely technical setup but i think the fundamental in the same side. Last week USD/CAD broke the raising trend line that was taken from early may. The pair moved higher again later and as expected found strong resistance on trend line and formed evening star formation which is confirmation for the trade idea.
I decided to sell the pair under the resistance turned support line at 1.0300

Trade Adjustments:
I just gonna keep eye on the events on Europe and might close the trade if risk aversion dominate the market sentiment next week.