Peter Bain Forex Trading Commentary for Friday November 3, 2006

Forexmentor.com Forex Trading Price Action

The news just keeps getting worse for the Canadian dollar. It's not enough that oil prices are off, and manufacturing is hurting. The government added some gas to the flames by taking away income trust incentives. Boy, did foreign investors hate that.

They gave the loonie a bad case of the uglies by selling it in droves. Knowing that the USD/CAD pair is in an uptrend, given the loonie's weakness, we are ever-vigilant in looking for more buying opportunities.

Invariably, the pair will sell off from time to time (profit taking, dumb money hysteria, etc.). That's when you want to play Dr. Sleuth, and grab retracements while they're hot. But, you don't want to get in too soon. Patience!

After the NFP news came out today, following a nice downtrend continuation pattern on the 15 minute chart, it then became a matter of what to do. You would only want to go long on a break of the B point, using the KTTN system (described in the members area at www.forexmentor.com). This because of the ominous head and shoulders pattern hanging over price action on the 4 hour and 1 hour chart.

Next week, I'll try to spend more time exploring the other currency pairs. Opportunities abound.

See today's chart at: http://www.forexmentor.com/campaign/nov0306.html

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Peter Bain Forex Trading Commentary for Thursday November 2, 2006

Forexmentor.com Forex Trading Price Action

I hate to admit that I have a love affair going with the Canadian dollar lately, but I do - mainly because I am heavily committed to it. Not that I see the loonie rising. Far from it. I see the USD/CAD pair continuing to rise because of all the bad economic news coming out lately driving the loonie down. And, it ain't going to get any better for the loonie any time soon folks. Fundamentals are like the Queen Mary. They change direction ever so slowly. And, right now, they say the Canadian economy is in for one heck of a rough ride. That can be either good or bad - good if you're short the loonie - which we are with our long USD/CAD positions. Right folks!? Yesterday, we had an up-trend continuation in the works on the 15 minute chart, and it came to fruition today, once MACD neutralized back to the waterline. There was also evidence on the higher level charts that this pair had wind in its sails. That's the value of top-down analysis.

See today's chart at: http://www.forexmentor.com/campaign/nov0206.html

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Peter Bain Forex Trading Commentary for Wednesday November 1, 2006

Forexmentor.com Forex Trading Price Action

You all are in the USD/CAD position trade, right? Please say yes. I've been beating that drum now for the past couple weeks. There's an old saying, "Some will, some won't, so what." Now maybe you'll believe me when I say we are in an up-trend on this pair? In this business, it's far too easy to be negative, and do anything but pull the trigger. That's the easy way out. It takes courage to take a position, and stick to it. Yesterday, we had what appeared to be a downtrend continuation pattern unfolding on the 15 minute chart. But, ta-daaaaa!!! There was such a thing as a demand (support) trendline on the weekly chart that looked like it would hold. And, sure enough it did. What was supposed to be a downtrend continuation pattern turned out to be a downtrend reversal pattern. Price came into today's session, found support at the central pivot point, and immediately headed for M4, the expected high on this M2/M4 day.

See today's chart at: http://www.forexmentor.com/campaign/nov0106.html

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Peter Bain Forex Trading Commentary for Tuesday October 31, 2006

Forexmentor.com Forex Trading Price Action

Okay, let's shift gears today and focus on the Swissy. According to COT (Commitments of Traders), the Big Dogs are extremely long this currency. Translation: they are extremelyshort the USD/CHF pair. So, what would you be looking to do? Sell the rallies in the downtrend. Right? Right! Well before the London open today, all chart levels said the samething - the trend was down. The 200 EMA is a good tool to get your head around this. So, what to look for? When price came into today's session, it found support at the centralpivot point. Just before the London open, it shot up to M4 - the expected high for today - this being declared an M2/M4 day. Price was also above the down-sloping 200 EMA. Okay,then what? Well, this was a rally to be sold. Easy! Sell those rallies folks! And, yes, if you know how to trade retracements, that's fine too. But, it's much easier to focus on one concept at a time, especially if you are new to this business. Want more helpful clues and hints. They're all waiting for you in the members area at www.forexmentor.com.

See today's chart at: http://www.forexmentor.com/campaign/oct3106.html

See sample AM Review at: http://www.forexmentor.com/sampler/