Monday, March 05, 2007

Canadian Dollar Update

A few people have asked me what my view on the Canadian Dollar is so I'm posting my comments now (12:30 am Monday morning) because I won't be able to update this blog during trading hours.

I got long 2 weeks ago when the C-Dollar made a 4 week high. Last week the trade went against me and closed at the lower fib retracement level. My initial stop is shown in the above chart in red, but given the volatility I expect this week due to the ECB meeting, I would recommend taking the position off today even though my initial protective stop price hasn't been hit. I don't think it is wise to hold a position with a negative mark going into a volatile week where the ECB and a few other banks will meet.


kk said...

Hi Kevin,

Thanks a lot for the posting. I wonder if I need to liqudate all of my positions or just part of them. Could you kindly show us the commercial traders (smart money)statistics chart? Thanks!

Kevin said...

Hi KK,

The commercials are still long the Canadian Dollar. I took the trade off because commodities are moving lower and a few banks will be meeting this week. I'm sorry you're losing money on the trade.


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