USD/CAD: Headed Lower
April 9, 2009
If you watched my interview on the Business News Network yesterday and read my seasonality article, you will know that I am bullish the Canadian dollar for a variety of reasons. Yesterday, USD/CAD was trading at 1.24 and hopefully you were able to bank some pips following the interview. However if you haven’t I still believe that USD/CAD is headed lower. As you can see in the following chart, the currency has entered the “Sell Zone” which I determine using Bollinger Bands. A confluence of moving averages and a key Fibonacci level made 1.2415 a very strong resistance point. The 1.22 level will also be a key support to watch as it represents the monthly lows, but if that level is cleared, USD/CAD could be on its way back to 1.20.
I also talked about shorting EUR/AUD in my RBA preview on FX360.com Monday. It is now below a very significant support level and as long as it does not close back above 1.85, it could fall as low as 1.80 (EUR/AUD chart at the bottom of the article).
source: eSignal
Posted in 2009 canadian dollar, Canadian Dollar, Forex Technicals, forex blog
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April 17th, 2009 at 10:52 am
Kathy, in your book Day Trading and Swing Trading Volume 2, can you please explain, what you mean by looking for a 50, 100, & 200 day crosses in the journal for trends? Are you speaking of the candlesticks specifically crossing theese MA’s or the MA’s themselves crossing each other, and please advise of the average timeframe these crosses should be acknowledged, ie. if the cross occured, 3 days ago, should I acknowldedge that in the journal or we only looking for that day crosses, I am using the daily chart for me scanning as you point out in the book.
PS. to everyone who reads this, the book was worth every US Dollar!
Thanks in Advance,
Eric