[B]Long or Short[/B]: Long
[B]Entry Point:[/B] 1.0150 (major support and resistance level for USD/CAD
[B]Stop Loss:[/B] 1.0090 (just below 1.0100)
[B]Profit Target/s:[/B] 1.0300 (major psychological handle, previous resistance)
[B]Reward-to-risk Ratio:[/B] 2.5:1
[B]Risk percentage:[/B] 1%
[B]Indicators used:[/B] Stochastic (14,3,3)
[B]Trade Rationale: [/B]
Overall I’m still bearish on the comdolls as I think that the impact of the EU Summit “progress” will soon fade. I also suspect that oil prices, along with high-yielding currencies, are due for a pullback. The pair might hit 1.0150 on a continuation of the rally in Monday’s Asian session trading, but the pair could soon go on its way back up.
On a technical level, I’m expecting the 1.0150 handle to provide support. The level has historically been one of the most significant inflection area for the pair.
I’ll look for any changes in risk sentiment on Monday’s London session. I’ll cancel the trade if traders are still optimistic. If I get triggered and price goes my trade’s way, I’ll move the stop to break even at 1.0240 (another significant level on the 4h chart). I’ll close my trade early if a couple of candles break below 1.0150 but hasn’t reached my SL.