Commentary on the USD/CAD

Forexmentor.com Forex Trading Price Action

Well, the low that was established 22 candles ago on the daily chart for the USD/CAD pair was taken out one candle ago on the same chart – quite disconcerting, were it not for the fact that it was taken out by a rather long price rejection candle, called a hammer. So, that’s both bad news and good news. Further, the hammer’s lower shadow (or wick) exceeded the lower Bollinger band. When you see that happen, you can reasonably expect price action to head for the other band (upper, in this case).

Also, consider the fact that MACD is still above its trigger line, and its trend is still up – headed towards the waterline. What does this all mean? Well, I hope it means that everything is okay. Just kidding folks. It looks like the bottom is holding, but we’re not out of the woods yet. I need to see some strength from here before I’ll relax. The fundamentals would seem to support that the pair should advance from here. What is causing uncertainty in this market is the prospect of tightening on the part of the BoC, but I believe that such a possibility has already been factored into price action. Stay tuned at forexmentor.com for further commentary on this pair.

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