Commentary on the USD/CAD

Forexmentor.com Forex Trading Price Action

We could very easily be in a downtrend continuation pattern on the 15 minute chart for the USD/CAD pair (Canadian dollar). Price is going through a price equilibrium (or consolidation) phase, wherein MACD has neutralized back up to the waterline, following a swoon in price. This is not all that bad. Actually, it’s a good thing, in that the overall trend on the higher-level charts is up, and any price weakness should be viewed as a great opportunity to buy this pair.

In the futures market, the loonie is in a steep slide, with no turnaround in site. Buyers, who bought previously, are selling the rallies just to get out. This is further fuelling the decline. It’s sort of like a self-perpetuating prophecy. It’s going to be difficult for this currency to reverse its course any time soon.

As a matter of fact, the currency is not even paying any attention to oil prices anymore. There is a flight from this currency, and prices could go much lower. Didn’t I say this last September? That’s exactly when I jumped on board this speeding train to nowhere.

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