Originally Posted by American Trader

Good for you on not getting stopped out yesterday. I was stopped out at just above 100, but then re-entered later right below that. My stop now is just above yesterday's high and my limit order is set to take half my position as profit just above the last major low (95.70??). I will look at the structure when this occurs and see if I should close the remainder of the position, or trail my stop.

It's quite possible I'll get stopped out some more on my dollar shorts, but that doesn't mean the dollar has bottomed necessarily. It just means when I get stopped out I need a re-evaluation, and then perhaps re-enter. The best opportunities I see right now are in pairs I rarely trade, AUD/USD and the USD/CAD. The very clear five wave rally yesterday in the AUD/USD spells significant upside potential ahead all over it, and it's pulled back significantly today and provided another great entry point to go long. The USD/CAD appears to be finishing up a correction on this final thrust upward and should fall hard soon.

The dollar bottom is near, or possibly has already occured (but nothing substantially supports that yet), so I'm keeping these positions very small, but a little bigger in the CAD and AUD.

Good luck.

American-T