It’s time for me to continue updating the blog on
important Forex releases. This week hasn’t been very rich in fundamental events
and we haven’t seen much action yet. Yesterday’s FED minutes failed to create
volatility and market participants will probably trade with the bias that they
have rather than information that they got from fundamental news. I am looking
at various Canadian dollar pairs now and I see that ‘the loonie’ has a huge
potential to fall long term. Weekly charts clearly show that there is a big
probability of breakouts in various CAD pairs and this is not good news for the
currency.
We have CPI from Canada this Friday and it could be
a real catalyst for sharp move of prices. It is always very difficult to say
when will the break occur, but in my opinion the phrase ‘sooner rather than
later’ fits very well in this case. British Pound Canadian dollar pair was able
to break about 200 sma on a weekly chart. After being for a very long time in a
downtrend the pair went above the average this June, then broke down, but for
the last three weeks it regained the lost ground and is above it again. The
pair is playing with 1.6400 level which is the breakout point and I intend go
long if the pair goes above it next time. The same can be said about other CAD pairs.
Be aware of that. There might be some rest and consolidation happening right
now, but as I said, I think the time of the breakout is near. Let us wait for
tomorrow.
I also suggest you reading my previous post: http://forex-news-trading.blogspot.com/2013/08/ultimate-guide-to-successful-day-trading.html
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