Peter Bain Forex Trading Commentary for Friday March 17, 2006
Forexmentor.com Currency Trading Price Action
Price is below the 89 and 144 EMAs at all levels for the USD/CHF pair (read, Swissy), and I'm not getting any reading from MACD on the hourly chart. But, I do see that MACD has turned bearish on the daily. So, I can only conclude that we should expect further price weakness for this pair. This, of course, is totally consistent with what COT is telling us - in that the commercial traders (read, Big Dogs) are extremely long the Swiss franc (read, short USD/CHF). Watch out below! The Golden Rule of Selling the Rallies in a Downtrend still applies. This trading idea is something to watch out for, especially at certain key strategic times of the day. For instance, the Swissy offered up a good counter-trend swing trade reversal at the London close yesterday, and that was followed by an opportunity to sell into the rally at the London open today. Great day trading opps. abound here. And, of course, position traders are happy campers.
To see today's at: http://www.forexmentor.com/campaign/mar1706a.gif
See sample AM Review at: http://www.forexmentor.com/sampler/
Forexmentor.com Forex Trading News
A recent Federal Reserve report revealed that U.S. economic activity is picking up, while inflationary pressures are moderating. The Federal Reserve's Beige Book regional economic survey supported the notion that the central bank is nearing the end of its tightening cycle. The Empire State Manufacturing Survey, which measures activity in the New York Federal Reserve district, has surpassed expectations.
Canada's dollar has legs, and has been given a boost by gold prices. Gold and the Canadian dollar have moved in tandem 87% of the time during the past year. Commodities, including gold and oil, make up about 35% of Canada's exports and about 10% of its economy, which is the world's ninth largest. The Canadian dollar is also benefiting from recent weakness in the greenback.
Oil prices are jumpy these days over concerns about the possibility of disruptions in Iranian shipments and a rally in gasoline.
Price is below the 89 and 144 EMAs at all levels for the USD/CHF pair (read, Swissy), and I'm not getting any reading from MACD on the hourly chart. But, I do see that MACD has turned bearish on the daily. So, I can only conclude that we should expect further price weakness for this pair. This, of course, is totally consistent with what COT is telling us - in that the commercial traders (read, Big Dogs) are extremely long the Swiss franc (read, short USD/CHF). Watch out below! The Golden Rule of Selling the Rallies in a Downtrend still applies. This trading idea is something to watch out for, especially at certain key strategic times of the day. For instance, the Swissy offered up a good counter-trend swing trade reversal at the London close yesterday, and that was followed by an opportunity to sell into the rally at the London open today. Great day trading opps. abound here. And, of course, position traders are happy campers.
To see today's at: http://www.forexmentor.com/campaign/mar1706a.gif
See sample AM Review at: http://www.forexmentor.com/sampler/
Forexmentor.com Forex Trading News
A recent Federal Reserve report revealed that U.S. economic activity is picking up, while inflationary pressures are moderating. The Federal Reserve's Beige Book regional economic survey supported the notion that the central bank is nearing the end of its tightening cycle. The Empire State Manufacturing Survey, which measures activity in the New York Federal Reserve district, has surpassed expectations.
Canada's dollar has legs, and has been given a boost by gold prices. Gold and the Canadian dollar have moved in tandem 87% of the time during the past year. Commodities, including gold and oil, make up about 35% of Canada's exports and about 10% of its economy, which is the world's ninth largest. The Canadian dollar is also benefiting from recent weakness in the greenback.
Oil prices are jumpy these days over concerns about the possibility of disruptions in Iranian shipments and a rally in gasoline.
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