The USD/CAD pair is still in an uptrend
Forexmentor.com Forex Trading Price Action
The Canadian dollar continues to capture my imagination. Recent jobs data had nothing to do with full-time employment, the economy appears to be slowing, manufacturers are hurting, interest rates are on hold and rumored to be going down at some point and so it goes. If you take a look at the weekly chart for the USD/CAD pair, you will clearly see that we are STILL in an UPTREND as evidenced by MACD trending up above its trigger line with good angle and separation, and price action trending up. The trick here is to wait for price to break through the number 2 point of the 1-2-3 bottom formation. When it does that, if it does that, then I will be in a better position to determine how far price will go. If you are not already in this position trade, I would suggest you look at getting in, once the number 2 point is convincingly breached to the upside – i.e. 5 pips above that level, at a level not ending in zero. The commercial traders are extremely long the loonie, but that sentiment is usually an early warning of what might happen down the road – out as much as three months ahead. In the meantime, we must resort to good old technical analysis to keep us in the trade, or cause us to consider getting out. I personally am heavily committed to the long side of this pair, and have no immediate plans to change my mind.
See latest sample AM Review at: http://www.forexmentor.com/sampler/
The Canadian dollar continues to capture my imagination. Recent jobs data had nothing to do with full-time employment, the economy appears to be slowing, manufacturers are hurting, interest rates are on hold and rumored to be going down at some point and so it goes. If you take a look at the weekly chart for the USD/CAD pair, you will clearly see that we are STILL in an UPTREND as evidenced by MACD trending up above its trigger line with good angle and separation, and price action trending up. The trick here is to wait for price to break through the number 2 point of the 1-2-3 bottom formation. When it does that, if it does that, then I will be in a better position to determine how far price will go. If you are not already in this position trade, I would suggest you look at getting in, once the number 2 point is convincingly breached to the upside – i.e. 5 pips above that level, at a level not ending in zero. The commercial traders are extremely long the loonie, but that sentiment is usually an early warning of what might happen down the road – out as much as three months ahead. In the meantime, we must resort to good old technical analysis to keep us in the trade, or cause us to consider getting out. I personally am heavily committed to the long side of this pair, and have no immediate plans to change my mind.
See latest sample AM Review at: http://www.forexmentor.com/sampler/
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