I tried selling the Canadian dollar yesterday. MACD showed an incipient bearish crossover, and I was looking for followthrough selling when the red trendline was broken. Yesterday’s selloff ran out of gas, and reversed back up, stopping me out for a small loss. With the bearish MACD crossover in place, I was still looking for a short sale today. The initial sale point was at yesterday’s low of 8096, but I didn’t have an order working to sell there. It quickly dropped down to make a new intraday low at 8077, and I placed the order to sell at 8075, on a break to a new low. I got stopped in, and they dropped to a new low at 8032. The short term pattern turned sideways, and I lowered the stop to lock in a profit. Following the release of the DOE crude inventory report it appeared that many physical commodities were attempting to bottom, so I covered at 8040. I will look for another opportunity to short this market-maybe on a rebound back toward 8100.
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