Canadian dollar is weak and shows no signs of reversing in the near future

Forexmentor.com Forex Trading Price Action

As the week comes to a close, I want to remind you that the Canadian dollar is weak, and shows no signs of reversing its course in the immediate future. Weaker-than-expected purchasing data that came out on Wed. reminded us that the U.S. economic slowdown is exacerbating Canada’s economic woes. Canada depends heavily on exports to the U.S., where the situation is weakening. It should be noted that the USD/CAD pair is not the only place where you will find good trading opportunities. You should always be on the prowl for other interesting set-ups. For example, if you believe, as I do, that the USD/CAD pair has further upside potential, then you should have a look at the AUD/CAD, CAD/CHF, CAD/JPY, EUR/CAD, and GBP/CAD pairs for long/short trades. Depending upon which pair you are working with, buy the dips in an uptrend, and sell the rallies in a downtrend.

Next week, I hope to take a look at other currency pairs to broaden our horizon. In the meantime, why not take the time to explore all that we have to offer in the members area at www.forexmentor.com.

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Sell those rallies in a downtrend on the EUR/USD pair

Forexmentor.com Forex Trading Price Action

According to MACD on the 4 hour chart for the euro (EUR/USD), and the 200 EMA on the 15 minute chart, the trend was down well before the London open today. Therefore, the rally up to M3 at the London open (the expected high for the day) was seen as nothing more than a rally ina downtrend. And, of course, you would have done what? You’ve got it. Go short! Sell those rallies in a downtrend folks! Not only that, but we had a Tom DeMark trendline break immediately after the London open, confirmed by MACD punching down through its trigger line. Pretty coolstuff, eh? Oh, and before I forget, let’s not forget my favorite pair of late – the USD/CAD. We’re UP to 1478 now. The recent announcement from the BOC (Bank of Canada) was to leave interest rates alone. Who could have guessed? In actual fact, they should be going down. That would be another nail. Do you get that sinking feeling? It’s called being short the loonie (translation, Canadian dollar) and long the USD/CAD pair. All aboard! Why not just bite the bullet, join our members at www.forexmentor.com and relieve all the mystery and stress. It’s not all that difficult, if you know what you are doing.

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

Trend is up on the USD/CAD pair

Forexmentor.com Forex Trading Price Action

I hate to keep harping on the Canadian dollar, but harp away I will. That’s one of the advantages of doing the AM Review. I get to pick the currency pair I work with. I specialize in the loonie, and have done so for the past ten years. So, I know its rhythms and personality. It’s a lot like reading sheet music, not that I was any good at learning how to play the piano. What new can I say that I haven’t already said? Lots. For starters, price is above the 200 EMA on the daily chart. That’s bullish. Secondly, there doesn’t appear to be much the Bank of Canada can do to influence the direction of the Canadian dollar, as they are pretty much at the mercy of whatever happens south of the border. After all, Canada is the tail on the dog – not to offend diehard Canadian enthusiasts. The trend on the 4 and 1 hour charts, coming into today’s session, was up – as reflected by the attitude of the 200 EMA. Price swooned to pivot point M2 at the London open, where it immediately reversed in the form of a hammer – in a buy area (that area below the central pivot point). Subsequently, we had a trendline (a.k.a. distribution, resistance or supply) break, which was confirmed by MACD punching up through its trigger line. Another thing to be observed is the fact that price had exceeded its lower Bollinger band. In such cases, pricewill then pull back within the bands, and head north, in this case, to the other band (upper in this instance). It should be further noted that, when price swooned, it was headed for M2, the expected low for the day – given the relationship of the close at midnight to the open 24 hours earlier. I could go on, and on, and on. But, why not just do yourself a favor, and check out all the goodies in the members’ area at www.forexmentor.com. See you there, and at the bank.

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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/