USD/CAD Cad is struggling with .9860 level so we are keeping a close eye on it. New wedge pattern emerging and a break of the lower trend line currently .9760 could yeild .9500 so keep a look out for a break of the trend line of this wedge pattern. This would not negate the expected move to parity it would only postpone it but no reason to ride a move that far down. Better of closing with profit or hedging and then re-entering or closing the hedge on support.
We are seeing a capitulation move on the EUR/USD and the USD/CHF very similiar to the one we saw on the Cad when we were attempting to find a bottom. Anytime you are trying to pick market tops and bottoms you have to expect the market to push thru in an attempt to clear stops and take everyone out. A lot of it has to do with timing however I am still confident with our positions on the USD/CHF as I added another position on today at 1.1084. This will likely be my last add for this pair.
On the EUR/USD I am still waiting for a few more things to line up before making another add on that position. I am currently only leveraged around 1:1 so I am in the EUR/USD with very small lots. I expect when the market finally bottoms out we will see the a violent reversal from this pair. Again risk to reward along with proper leverage is key to picking tops and bottoms.
If you have been using the levels posted for simple intraday trades you should be well ahead as the levels have all bounce substantially the first few times giving amlple opportunity for good profits. If you are trading on an intraday basis you should be using the stops I posted on both the usd/chf and the eur/usd which would have stoped you out with minimal losses only after several bounces that would have yeilded good profits. So again it there are two different ways to trade these levels and your leverage and risk levels should be adjusted according to the way you are using the levels. I will keep you updated as I make changes in my strategy but for now I am holding all my long term positions.
