Peter Bain Forex Trading Commentary for Tuesday October 17, 2006
Forexmentor.com Forex Trading Price Action
The headlines read, "Sluggish growth could lead to recession." "C$ falls after strong U.S. retail report." "U.S. slowdown slams central Canada." Where do you think the Canadian dollar (a.k.a. the loonie) is going? According to one reliable source, it could hit US80.6 cents by year-end. Want more ammo? Oil has dropped 25% since the start of the year, natural gas is off by 60%, etc. Given that Canada is a resource-rich country, these trends do not auger well for a strong loonie. If you believe what I am telling you, then buying the USD/CAD pair on weakness, and holding it as a position trade, is a reasonable thing to do, right? Right! But, then be patient. It will not immediately grow to the sky, but rather saw-tooth its way up - gradually, as profit-taking takes place, and the dumb money put a sell on the pair. So, there you have it. An idea to chew on. Ka-ching, and have a great day!
See today's chart at: http://www.forexmentor.com/campaign/oct1706.html
See sample AM Review at: http://www.forexmentor.com/sampler/
The headlines read, "Sluggish growth could lead to recession." "C$ falls after strong U.S. retail report." "U.S. slowdown slams central Canada." Where do you think the Canadian dollar (a.k.a. the loonie) is going? According to one reliable source, it could hit US80.6 cents by year-end. Want more ammo? Oil has dropped 25% since the start of the year, natural gas is off by 60%, etc. Given that Canada is a resource-rich country, these trends do not auger well for a strong loonie. If you believe what I am telling you, then buying the USD/CAD pair on weakness, and holding it as a position trade, is a reasonable thing to do, right? Right! But, then be patient. It will not immediately grow to the sky, but rather saw-tooth its way up - gradually, as profit-taking takes place, and the dumb money put a sell on the pair. So, there you have it. An idea to chew on. Ka-ching, and have a great day!
See today's chart at: http://www.forexmentor.com/campaign/oct1706.html
See sample AM Review at: http://www.forexmentor.com/sampler/
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