Trading a longer time frame helps fit trading into your schedule while you move from day job to full-time trading. Learn to trade longer time frames with 
Howdy folks!
Another Monday evening, another trading week begins. There is a plethora of fundamental news on the docket this week from rate statements to employment data. It will be interesting to see if the Dollar smack down continues unabated among the news sentiment. Being a trend trader I need some good pull back days within these anti-Dollar trends in order to enter on value so I sit sidelined for now. There should be plenty of opportunities mid week to choose from. If your in a contrarian mood, best of luck, I don’t have the stomach for it.
Long USD/CAD?
I had a buddy tell me he was short USD/CAD earlier this morning and it got me thinking about the health of the USD/CAD trend. Being a trend guy I’m looking to sell on a value price, perhaps around $1.1090 but you could look at this pair a couple of ways. Thinking out loud with today’s charts below.
USD/CAD is way outside the bollinger bands on the weekly chart and starting to test an old breakout zone from back in September of last year. $1.080 may find support after the long run down from $1.30 but does anybody really want to step in front of this train right now without some serious confirmation? On the other hand, depending on how this week’s candle closes it may be a long term play back up to $1.15 on the weekly chart.
The daily chart trend is still moving lower with some potential resistance being the $1.1090 level. My preference would be to continue with the daily trend and find a nice low risk selling opportunity in this zone.
Best of luck, more tomorrow!
Ryan
IMPORTANT NOTICE: These comments are for information purposes only. My opinions or other information contained in this post do not constitute investment advice. It should not be understood as a direct recommendation to buy or sell any currency contract or other investment vehicle. Forex trading involves substantial risk of loss and is not suitable for all investors.
Hi Ryan;
I caught the ride down and sold pretty close to the support level. It’s so strange how predictable the daily can be on some charts, while others are just noise. I’m looking for a bounce up, back into the BB, then back to support. I don’t think we’ll go back up but I have an open mind, let price lead the way.
I read one of your other posts where you got burnt on a stop by a pip or two. Am I nuts or do most breakouts come back (fail to some extent) then shoot up? I notice this mostly on the H4 or lower, not so much on the daily.
Hi Brian,
I really enjoy using monthly, weekly and daily charts to plot out support and resistance plays. The long term stuff can setup some powerful trends if your patient enough to stick with them for the long haul.
Breakouts are fickle in my experience. Most have pull backs, probably more than 60% if I had to guess and sometimes they fail. You just have to roll with the punches and take your lumps when they come.
Best of luck, thanks for the comments!
Ryan