Commentary on the USD/CAD

Forexmentor.com Forex Trading Price Action

Can anybody spell ‘down?’ Well, the USD/CAD pair knows full well what that word means. This pair is in a freefall. Last night’s price action presaged what was likely to happen today. We had a 1-2-3 top in place on the weekly chart, and MACD was bearish on that chart, plus the daily and 4 hour. Further, the 200 EMA on the lower level charts was trending down.

Price came into today’s session below the central pivot point in a rise, which represented a good short opportunity. Sell those rallies in this downtrend, folks. Price didn’t make it anywhere near the CPP, before it collapsed – once more.

Of course, I told you to liquidate your long positions in this pair just weeks ago. And, the prudent thing to do then was to look for good entry points to the short side. Today was another perfect example of that bias. For more on what to look for when trading the forex, it’s all waiting for you at: www.forexmentor.com

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Head and shoulders pattern for the GBP/USD

Forexmentor.com Forex Trading Price Action

According to Darren Webb of the UK, “we now have a head and shoulders pattern on the daily for the GBP/USD, with MACD topping out, and about to turn south. Stochastics is very overbought too. We have MACD divergence everywhere from the monthly, weekly through to the 4 hour.”

Add to all that the fact that the Big Dogs are net long the US dollar index, and you have a sound argument for this pair being in overbought territory from a position trading point-of-view.

Jason David, another one of our members, is calling for 3676 on the euro. As you can see, we have an active membership at www.forexmentor.com. You should check us out on a regular basis, and catch all the latest trading strategies and member submissions like those posted today.

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