Peter Bain Forex Trading Commentary for Thursday October 19, 2006
Forexmentor.com Forex Trading Price Action
"Forecast sends C$ to 3-month low." That was reported in the National Post, Wed., Oct. 18/06. The Bank of Canada left interest rates unchanged, and lowered its Canadian growthoutlook due to a softening U.S. economy. Just more in a string of bad news for the Canadian dollar (otherwise fondly called the loonie by some enthusiasts, of which I am not one). So, folks, I'm back on my theme of "buying the dips in the uptrend for the USD/CAD pair (since the loonie is weakening). Get it? Today, we had a pull-back in price to the 200 EMA level on the hourly chart. Methinks that is a good buy point. Of course, any weakness represents a good buy point, if you truly believe that the loonie has nowhere to go but down (read, up for the USD/CAD pair). It may take a while for price to break through the number two point of the 1-2-3 formation on the hourly and weekly charts, but that would be a good place to put your buy stop, if you're not already in the market - five pips above the number two point, at a level not ending in zero.
See today's chart at: http://www.forexmentor.com/campaign/oct1906.html
See sample AM Review at: http://www.forexmentor.com/sampler/
"Forecast sends C$ to 3-month low." That was reported in the National Post, Wed., Oct. 18/06. The Bank of Canada left interest rates unchanged, and lowered its Canadian growthoutlook due to a softening U.S. economy. Just more in a string of bad news for the Canadian dollar (otherwise fondly called the loonie by some enthusiasts, of which I am not one). So, folks, I'm back on my theme of "buying the dips in the uptrend for the USD/CAD pair (since the loonie is weakening). Get it? Today, we had a pull-back in price to the 200 EMA level on the hourly chart. Methinks that is a good buy point. Of course, any weakness represents a good buy point, if you truly believe that the loonie has nowhere to go but down (read, up for the USD/CAD pair). It may take a while for price to break through the number two point of the 1-2-3 formation on the hourly and weekly charts, but that would be a good place to put your buy stop, if you're not already in the market - five pips above the number two point, at a level not ending in zero.
See today's chart at: http://www.forexmentor.com/campaign/oct1906.html
See sample AM Review at: http://www.forexmentor.com/sampler/
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