Commentary on the AUD/USD and USD/CAD

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I would keep an eye on the AUD/USD pair. Looking at the daily chart, price has exceeded the upper Bollinger band, and Stochastics is reading way overbought-to-trending down. Usually, when price exceeds a BB, it wants to seek out the other band – in this case, the lower one. It could also be that MACD is trying to put in negative divergence to price – yet to be confirmed. All of this said, the overall trend, as reflected by the 200 EMA, is still up. That does not mean to say we cannot get a trade-able retracement.

On another front, the hourly chart for the USD/CAD pair is showing signs of gaining momentum. Of course, we’re all looking for a turnaround in this pair, but it is far too early to make such a call. Successful traders spend an inordinate amount of time proving tops and bottoms. That’s where the real art of trading the forex enters the picture. Get the scoop at: http://www.forexmentor.com/

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Commentary on the USD/CAD

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Well, okay, have we hit bottom on the USD/CAD pair yet? Looks like it’s trying to bottom out. We have good support at the 0560 level – since June 4th. Could be a good bottoming out process.Steve Nison said he likes that kind of solid foundation. We’ll see.

Here’s what the local rag (National Post) had to say: “We’ve had some weakening in the domestic data, some weakening in commodity prices, we’ve seen a somewhat firmer U.S. dollar, and an abrupt increase in U.S. interest rates. And, yet, the loonie is very much hanging in, despite these negative influences. Brought to you by www.forexmentor.com.

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