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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Pick of the Day: USD/CAD

Posted 22:07 26 April 2006 | Comments

Today's pick is based on general fundamentals and the trend. We all know the loonie and other "commodity" currencies have been on a tear against the US dollar. Even with oil slightly pulling back from record highs, we still saw the loonie gain some ground against the greenback. Along with commodities, we see interest rate differentials narrowing, foreign interest in US securities declining, and lack of follow through from strong US data. It's just not looking too good at the moment for the US dollar, and it's showing on the charts. So here's a couple of trade ideas:

Short USD/CAD at 1.1241, stop at 1.1295, PT1 at 1.1210, PT2 at 1.1185

Here's a long trade idea just in case we hear Bernanke speak tomorrow all gung ho on US economics at 10:00 am EST.

Long USD/CAD at 1.1330, stop at 1.1290, PT1 at 1.1345, PT2 at 1.1365

We may not even see any movement until Bernanke speakes unless the weekly unemployment rate(8:30 am EST) comes out with a big surprise. Other than that there are no major news to report until then. Be very cautious around those times.