[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.
[B]Trade Adjustments:[/B]
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.
