USD CAD Long Set Up Now in Play

USD CAD Long Set Up Now in Play

Following on from my original USD:CAD analysis  the factors I was looking for to confirm this trade have now given confirmation and I entered a long position today.

As discussed in the previous analysis, the (green) 4 hourly 200 MA has now been properly tested and price rallied beyond it:

 

The daily chart is also sensitive to it’s 200MA and the following chart clearly show’s it’s ability to define bull and bear markets:

Price could well remain in this choppy pattern for a while before truly breaking the nearby resistance marked by the horizontal line converging with an old fib level, therefore I will be watching the intraday chart and if signs of weakness become apparent I may close part or all of the position with a view to re-entering on pull backs.

A true failure of this new up trend will be marked by a break back below the 200 MA on both 4 hourly and daily time frames, in which case, I’ll scrap the bullish idea altogether.

In the meantime, my stop loss is set just below 0.9846 and I would like to see an hourly close above 0.9951 within 24 hours otherwise I may start to lose short term confidence in the position.

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3 Comments
  • RS2OOO
    Posted at 21:34h, 20 September

    Still holding this trade but disappointed that 0.9950 acted as resistance as I really wanted a break above this level today.

    If we remain below 0.9950 I’ll be quite nervous going into FOMC and may either put stops at breakeven or close the position until things are clearer. It will all depend on how things look at the time.

  • RS2OOO
    Posted at 18:33h, 22 September

    This long position has now been closed. A profit in excess of 400 pips was taken.

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