[TW] 08-20-2011 USD/CAD Long by pipballer

Daily Chart USD/CAD

Long or Short: Long
Entry Point: 1.0050
Stop Loss: .9900
Profit Target/s: 1.0500
Reward-to-risk Ratio: 4:1
Risk percentage: 1%

Trade Rationale:

Right now I am bullish on USD. I think if we see more sell of in other markets, we could see dollar rally. If price goes above 1.0000 it should continue rise. I think if the pair breaks out of the double bottom, it has potential to rise around 450 pips, roughly the height of the double bottom.

Trade Adjustments:

I will have to gauge risk sentiment and be wary of a false break above parity. I might keep my trade open longer if the move up is very strong.

Not too sure on a bullish USD. Gold’s been rallying, a common source of CAD-buying.