I agree it's a bit tight, but I have a habit of going 1:1 on my SL/TP, trying to get into 1:2 or 1:3 at least. Plus I'm not super confident when it will break out of the current horizontal range that started rally up on Friday. I'm more confident it will swing back up to the top of the range at least.
The USD rally is probably going to continue, possibly even pick up strength into 2015 from what I'm reading.
- Dec 15th - new high to 1.672 from upward momentum, that start from started from a swing low on Nov 23rd
- Consolidation from Dec 15th to Dec 31st, but long term momentum is still bullish
- Swing lows during consolidation keep hitting 1.5710, which is in an H4 order block from Dec 14th, and close to the 62-79% retracement level, and as expected it bounces up on Jan 2nd
- Strong upswing on Jan 2nd, followed by correction/consolidtation on Jan 5th
- At 12:30pm Jan 5th (my time on the chart, not GMT) the uptrend goes into a horizontal range for a few hours, breaking the trend -- which is where you can see my most recent order block rectangle in the first image
- I chose to start my fib at the institutional level of 1.72 as it was there that the upswing showed some resistance, even though the direction of the trend didn't change until 1.74 where I put my order block
Because the new order block happened to land close to where the "sweet spots" would be on the fibo, and from the fundamentals I'm reading the strong upswing should continue well into 2015, possibly sending the USDCAD into the 1.20+ area.
I'm currently trying to scalp a little from the horizontal range we are stuck in, also hoping it will break out to the upside like fundamentals are indicating it should.
The image below will show what I'm talking about more long -term.