About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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August 2006

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Pick of the Day: USD/CAD

Posted 19:59 16 August 2006 | Comments

Tonight’s pick is on USD/CAD. It’s been in downtrend amidst US dollar bearish sentiment and higher oil prices. With today’s double economic whammy of lower US CPI and Housing Starts, we may see greenback sell off continue as the probability of another FOMC rate increase drops. To find a great price to jump in the trend I’m looking for a sell below the pivot point at about the 38% fib retracement area. Also, the stochastics are indicating an overbought sentiment after the big drop this morning, which is a great signal for a short. In case the pair continues north, I have another short order prepared at the R1 line:

Short USD/CAD at 1.1175, stop at 1.1205, pt1 at 1.1150, pt2 at 1.1100

Short USD/CAD at 1.1240, stop at 1.1265, pt1 at 1.1220, pt2 at 1.1190