Peter Bain Forex Trading Commentary for Wednesday October 11, 2006
Forexmentor.com Forex Trading Price Action
There are signs that the USD/CAD pair is getting tired, after a nice run up in price - Stochastics overbought on the daily chart, and MACD showing negative divergence both on the hourly and 15 minute charts. But, don't be fooled. This is just nature's way of tricking the dumb money into believing that the sky is falling. Of course, we know better, right? Invariably, we will see a pullback (a.k.a. a retracement), wherein we (the smart money) will get ready to pull the trigger again - to the long side, as either a day trade, or position trade. What else? After all, we have a nice 1-2-3 bottom in place on the daily and weekly charts, and the 200 EMA is trending up on the hourly and 15 minute charts. I would watch price behavior in relation to the 200 EMA and, looking for a confluence of events, then engineer a buy situation.
See today's chart at: http://www.forexmentor.com/campaign/oct1106.html
See sample AM Review at: http://www.forexmentor.com/sampler/
There are signs that the USD/CAD pair is getting tired, after a nice run up in price - Stochastics overbought on the daily chart, and MACD showing negative divergence both on the hourly and 15 minute charts. But, don't be fooled. This is just nature's way of tricking the dumb money into believing that the sky is falling. Of course, we know better, right? Invariably, we will see a pullback (a.k.a. a retracement), wherein we (the smart money) will get ready to pull the trigger again - to the long side, as either a day trade, or position trade. What else? After all, we have a nice 1-2-3 bottom in place on the daily and weekly charts, and the 200 EMA is trending up on the hourly and 15 minute charts. I would watch price behavior in relation to the 200 EMA and, looking for a confluence of events, then engineer a buy situation.
See today's chart at: http://www.forexmentor.com/campaign/oct1106.html
See sample AM Review at: http://www.forexmentor.com/sampler/
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