The Dollar/Canadian pair is at an interesting place. It is flirting with a resistance line which it has been respecting for the last 6 months (currently about 1.2975). Also, the 800 sma is moving in the direction of the price. At the moment, the pair is about 400+ pips from the 800 sma. I think one of two things is going to happen. This pair is either going to break through the resistance line and shoot up (strengthening the US Dollar against the Canadian Dollar) or the pair is going to fall and bounce off of the 800 sma (as it has been doing regularly for the last six months). I am contemplating a trade where I put a sell order at 1.2900 or 1.2950 and wait for the pair to rebound to that price, then try to ride it down to the 800 sma. I'd put a stop loss maybe 30 pips on the other side of the resistance line. I'll keep you posted on how it goes.
Happy Trading!
Happy Trading!
