FX.co ★ USD/CAD: trading recommendations for May 10, 2013

Trading recommendations:

According to the previous events, the price has still been trapped between 1.0185 (78% of Fibonacci retracement levels) and 0.9987 (50% of Fibonacci retracement levels)

• Long buying:
• Buy above 0.9900 with a first target of 1.0100, it might resume to 1.0185.
• Short selling:
• Outlook -1-: Swing trade at 1.0250 in order to sell with a traget of 1.0030.
• Outlook -2-: Below 1.0020 look for further downside with 0.9900 and 0.9860 targets.

Warning:

Stop Loss should never exceed your maximum exposure amounts.

Risk to reward ratios are important and should be calculated.

Example 1:

A risk reward ratio of 1:1.5 is recommended:

Risk: 65 pips must make a profit of 97.5 pips.

65 pips * 1:1.5 = 97.5 pips.

Example 2:

A risk reward ratio of 1:1.5 is recommended:

Risk: 80 pips must make a profit of 120 pips.

80 pips * 1:1.5 = 120 pips.