Today I would like to share my thoughts on the USD/CAD currency pair.
I base my trades on technical analysis using major reaction highs and lows, ABCD retracements and fibonacci levels.
This is actually my first post so I won't get deep into anything, I just believe that right now is the time to go long the Canadian dollar. In the forex markets the most direct way to accomplish this is by selling the usd/cad currency pair. So we are in fact shorting something to go long, and if that is a strange concept then read up on trading basics, should be lots of websites available for that.
Weekly chart of usd/cad below
Image courtesy of Fxchoice/metatrader4
The green line in this image is the entry point for the trade at 1.3460 or better, the red line is the stop loss at 1.3670 . The black dotted lines with a T are the targets, short and long term. Risk management for this trade consists of moving stops to breakeven when the first T at 1.3000 is reached and taking profits at this level on half of your position to eliminate risk. Close out the rest of the position at the lower T at 1.1950
Good trading!