Limit sell placed @ 108.01 on the USD/CAD...not sure if it will hit or not, trying to catch another spike at the "top" forming for a 100-150 pips downward. S/L 108.65. First T/P above 107.
A good advice is to sit out a bit until you start getting a "feel" for the market. As it is now - anything pairing with the USD is going through violent motions. You need to be a clever and quick scalper IMO. The market is turbulent - and turbulence is unpredictable - i.e chaotic. It is next to impossible to get a bearing on such conditions. So, any medium horizon is just folly - no one are that good. One thing is sure though - for a low risk long-term position you can go short USD - and you can take THAT to the bank. The gold-related currencies might do ok unless they get too involved with the US crisis (i.e CAD might be slippery).
Initial reaction of 1.45 - 1.48 for the start of this week, we may see some very big swing moves. The trend might start to emerge just now. Political news will be the driver, along the commodities - as oil again.
Ivan, do you think the dollar rally will be sustainable in the short term? I am just not confident on how the reaction long term will be with the bailout. I just don't see an opportunity I am comfortable with. Your thoughts?