The USD/CAD pair remains bullish

Forexmentor.com Forex Trading Price Action

As far as I am concerned, we are in a channel in an uptrend on the 15 minute chart for the USD/CAD pair (Canadian dollar). This is generally considered to be bullish. Besides which, if you take a close look at the daily chart, you will observe that price action and MACD are maintaining their upside momentum. Even though the Big Dogs are signaling their long bias with respect to COT (Commitments of Traders) data, it should be noted that oil prices and the loonie are still trending down on their respective futures charts.

Essentially what the commercial traders are doing is continuing their accumulation phase, in anticipation of an eventual turnaround. That could take a while, but they don’t really care, as they are in for the long haul, and don’t really worry about the interim short-term daily swings. We, as traders, then have to rely on the technicals on the higher-level charts (weekly, daily) to catch the turn when it comes.

For more details on what to look for when position trading, please check out Gary Gray’s module in the members' area.

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