8-27-08
4:26a GMT – USD/CAD has plenty of room to fall on the 4-hour and daily charts, which is backed by a strong downtrend on the weekly and monthly charts. Oil prices have hit monthly lows and a rise in oil prices (which is a leading indicator for the CAD) would indicate a fall in the USD/CAD as the CAD strengthens. Pair is consolidating in a triangular pattern (yellow converging lines on chart below). Support is currently found above 1.0400. Below this level I expect a 100 pip fall to 1.0300 at a minimum.
Trading Idea: shorts favored on a break below 1.0400 with initial targets to 1.0300.
(click to enlarge)
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Do you still think that USD CAD has further to fall?
Absolutely I do but it is going to depend on the price of oil and how well the dollar does over the coming days.
On this particular trade the pair never made a break below 1.0400 therefore no trade was entered.
Can you please make prediction on tomorrows Trade Non-farms payroll.
Hi Charles,
I don’t trade news and definitely don’t try and predict news. I’ve found it is about the same as going to a casino and betting against the house.
Mark