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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June 2006

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Pick of the Day: USD/CAD

Posted 23:28 20 June 2006 | Comments

USD/CAD has made several attempts to break the 1.1250 price level on the hourly chart, but it looks like a "no go" as we're seeing a move down in the pair. Now, it may find resistance at the 200 sma, that's why I'm looking to short with a strong break below it. Tomorrow morning we have economic reports coming out of Canada including Retail sales and Leading indicators, but forecast numbers are lower than previous - we may see the pair move back up on loonie weakness. I'm going in contrarian mode...if we see a surprise to the upside in economic indicators, we could see a strong move downward. Here's a trade idea for that circumstance:

Short USD/CAD at 1.1115, stop at 1.1140, pt1 at 1.1100, pt2 at 1.1050