FX:USDCAD U.S. Dollar/Canadian Dollar
We were waiting for a LONG Entry for the last two days flat and watching the price action. Two possibilities. 1- Price will retrace to 1.26 levels (on the chart refer to green ) OR there will be a breakout of 1.28 strong resistance. What to do? The price action for the last 2 days indicates that there is large strength in USD (also against CAD). Also, OIL is weak (heading to 45$ in our estimation) and just seems to be completing a reactionary up move as we speak. Moreover, the USD Index made a retraction back to the large triangular formation (following breakout a few days before), which technically speaking may be a starting point for a strong up move ahead. A vey confusing situation indeed. Our suggestion is: Use dollar-cost averaging and enter long with only some portion of your portfolio (dedicated to USD/CAD ). If price comes back to 1.26 levels (green box), add more to position (if you can suffer some losses of course) but if the price advances towards 1.28, then you would already be in a quite good position to profit even more (rather than waiting a breakout of 1.28). As they say 90% of trading is money management! Regards.