Peter Bain Forex Trading Commentary for Tuesday October 3, 2006
Forexmentor.com Forex Trading Price Action
The USD/CAD pair is doing exactly as I said it would - rising, as the loonie (a.k.a. Canadian dollar) falls. Canada, being a commodities-rich country, sees its fortunes tied to resource prices, and it is generally held that high energy prices are not sustainable. Plus which, disappointing GDP data coming out of Canada sank its currency. Further, rumors of an economic slowdown in the U.S. seem to be overplayed - at least in the short-term. Even housing prices there seem to be on that rebound, but I wouldn't place too much emphasis on that information, or mis-information, as it may very well turn out to be. Government data should always be viewed with an element of suspicion, as it can sometimes bedivorced from reality. Today, we had a downtrend reversal pattern on the loonie kick in, which was only detectable by playing the channel breakout well after the London open. A continuation pattern was expected, but it did not come to fruition.
See today's chart at: http://www.forexmentor.com/campaign/oct0306.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
The USD/CAD pair is doing exactly as I said it would - rising, as the loonie (a.k.a. Canadian dollar) falls. Canada, being a commodities-rich country, sees its fortunes tied to resource prices, and it is generally held that high energy prices are not sustainable. Plus which, disappointing GDP data coming out of Canada sank its currency. Further, rumors of an economic slowdown in the U.S. seem to be overplayed - at least in the short-term. Even housing prices there seem to be on that rebound, but I wouldn't place too much emphasis on that information, or mis-information, as it may very well turn out to be. Government data should always be viewed with an element of suspicion, as it can sometimes bedivorced from reality. Today, we had a downtrend reversal pattern on the loonie kick in, which was only detectable by playing the channel breakout well after the London open. A continuation pattern was expected, but it did not come to fruition.
See today's chart at: http://www.forexmentor.com/campaign/oct0306.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
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