May Trade #14 - BUY USD/CAD

May 28, 2009 6:41 am (Manila)

Both lots are out:

1st Lot : +15 pips
2nd Lot: +30 pips
Total: +45 pips

It seems that I am right about a reversal coming for this pair. A hammer formed on the daily chart but is retracing in the hourlies. I will re-enter when the opportunity arises.

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May 27, 2009 3:00 pm (Manila)

This pair has been going south since the second half of April. On the daily chart, Bollinger Band, RSI, MACD and RSI all indicate a possible reversal to the uptrend. Just this afternoon, the Saudi Arabian Oil Minister says there is no need for an OPEC production cut - a possible sign that at current supply and demand levels, oil price is primed to head for their target of $75. A $75 per barrel oil has in expected by traders for quite a while and as such, might already be factored-in for the CAD.

Hence, I am entering this position:

BUY USD/CAD @ 1.1138
STOP - 1.1080
Limit 1 - 1.1153
Limit 2 - 1.1168

Just scalping for small profits today. Will turn-in again for a longer-term position if a setup forms.

Canada is the largest oil supplier to the continental United States. Hence, any oil price fluctuation affects the CAD. As I've said, $75 has been expected and fcatored-in by investors so nothing new in the demand for CAD.