Peter Bain Forex Trading Commentary for Wednesday October 18, 2006
Forexmentor.com Forex Trading Price Action
"The party is over (real estate)." That's a direct quote from a senior economist at a Canadian bank - one more nail in the loonie's coffin. The relatively high Canadian dollar has ravished the manufacturing sector in Canada's largest province - Ontario. And so, central Canada is getting slammed, and a recession is a distinct possibility. Add to that sluggish growth, and where do you think the loonie is going? I'll give you a hint - it ain't up. Translation: as the loonie continues to fall, the USD/CAD pair will continue to rise, given how the loonie is paired with the US dollar. Accordingly, what should one do? "Buy the dips in the uptrend." Where have you heard that before? You got it . Buy any and every weaknessin the pair you see, and expect a much higher result come year-end. This is where patience will be a test of your mettle. Today, we had another buying opportunity 6:30 am ET, wherein price swooned down to M2 - the expected low for the day - and then reversed, only to seek higher ground - again! Don't miss these opportuniutiues folks. Just keep an eye open for them.
See today's chart at: http://www.forexmentor.com/campaign/oct1806.html
See sample AM Review at: http://www.forexmentor.com/sampler/
"The party is over (real estate)." That's a direct quote from a senior economist at a Canadian bank - one more nail in the loonie's coffin. The relatively high Canadian dollar has ravished the manufacturing sector in Canada's largest province - Ontario. And so, central Canada is getting slammed, and a recession is a distinct possibility. Add to that sluggish growth, and where do you think the loonie is going? I'll give you a hint - it ain't up. Translation: as the loonie continues to fall, the USD/CAD pair will continue to rise, given how the loonie is paired with the US dollar. Accordingly, what should one do? "Buy the dips in the uptrend." Where have you heard that before? You got it . Buy any and every weaknessin the pair you see, and expect a much higher result come year-end. This is where patience will be a test of your mettle. Today, we had another buying opportunity 6:30 am ET, wherein price swooned down to M2 - the expected low for the day - and then reversed, only to seek higher ground - again! Don't miss these opportuniutiues folks. Just keep an eye open for them.
See today's chart at: http://www.forexmentor.com/campaign/oct1806.html
See sample AM Review at: http://www.forexmentor.com/sampler/
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