[TW] 6-13-2011 - USDCAD short by monstapips

Trading Discussion
1

USDCAD| Daily

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

[B]Entry Point:[/B] Short at .9690

[B]Stop loss:[/B] .9910 – above recent highs

[B]Profit target:[/B] .9450

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

[B]Reward-to-risk Ratio:[/B] 2:1

[B]Indicators used: RSI[/B]

[B]Trade Rationale:[/B]

The pair has consolidated into a really tight range lately and is still trading within a rising wedge. I feel that a break out is coming and I am favouring a break down lower. RSI is pointing downwards and the fair is having a lot of trouble closing above .9800.
Also, oil has been stronger lately, so I think we could see the CAD get a nice boost if oil prices continue to rise next week.

[B]Trade Adjustment: [/B]

If the pair continues to trade higher today and the beginning of next week, I will consider moving my entry point up higher, just putting it below the rising support line of the wedge.

2

Hi monstapips
Took a short position now just above your entry. Tightened my SL also to 0,9824. See 0,9800 as a resistance that hopefully will hold if it goes back upward. This also gives me a better R:R. Hopefully this is not a false breakout. I usually get wiped out though with too tight SL, but hey what can I do with a small account :slight_smile: