USD / CAD - Probe for Weakness
January 9, 2008 • Use Charts Better
Following up on my previous post, I think it would be a decent time to throw in a probing trade into USDCAD at this point (at the time of this posting).
A probing trade is a very small position that by itself is relatively inconsequential if it wins or losses. But the great thing about a probing trade is that it gives you a better feel for what the market is doing because you have money on the line. Additionally, once we get confirmation that sellers are stepping back in we can build into this making it a bigger position with only a slightly worse average cost for the overall position.
I’d be comfortable adding to this position on a break below the .9743 level.
Let’s sit back and see what happens next.
