Hello.

Thanks to David P. for submitting in a comment and asking us to do an anlysis on the USD/CAD.

Looking at the USD/CAD, it seems that the downtrend will continue - at least for a short time further.

Look for it to potentially hit the 1.0750 - 1.0700 area. Once it hits that area, we’ll have to look at it again because it does seem like the downside selling is losing steam so a reversal may be right around the corner.

This is a tricky week as we have the NFP coming out in a couple days and traders are definitely gearing up for that.

Be sure to perform your own analysis in multiple time frames before getting into any trade.

If there’s nothing before the NFP, we’ll come out with a USD/CAD analysis sometime next week after the market settles from Friday.

Thanks again and please let us know if you have any more questions/comments.

Hello.

Welcome to a new week of trading!

Here is a longer term update for the USD/CAD.

The trend seems to be bearish and look for a continuation of this as we move through the week.

We drew in some trend lines that may act as barriers in this downward channel. The next key price level is highlighted by the horizontal black line, which is the low from 11/5/2008.

Be sure to use your stops and apply your money management.

Good luck.

Hello.

Will the USD/CAD continue to rise? Fundamentals aside, there is a potential good trading opportunity here.

Our analysis shows we will come back down before heading back up.

Is this analysis contrarian? Sure it is. The pair may break the previous high - however, this could be a wick where a lot of people get “wicked” out if it wicks up and then heads back down.

Since we’re near the previous high, one may consider a short here, putting a stop a way’s above the previous high to not get “wicked” out.

If the trade goes against us, we get stopped out at our stop, however, if our technicals are correct, then we’ll be in profit. If it goes our way, as the trade progresses more into profit, move your stops down.

To help determine your “stop loss” price, you may consider a risk vs. reward ratio - which varies from trader to trader. A general consensus is a 3:1 ratio (again, some may have a higher ratio or lower ratio).

If you put your stop at 25 pips, you would put your limit price at 75 pips (giving you a 3:1 ratio).

Again, this is completely determined by your own personal risk tolerance, trading style and money management.

Whatever you do, be sure to always put your stops in and adhere to your money management.

Hello.

Here is a shorter term USD/CAD 5 min chart.

Although you can’t see it in the chart, this movement back up is completing Wave 4 of an Impulse movement down.

So, look for a potential small movement back up and then a move down. Remember, this is a 5 minute chart so this is a shorter-term trade and this can move very quickly in a short amount of time.

Check your announcements, apply your money management and place your stops.

Good luck and happy pipping.

Hello. We hope everyone had a nice and restfull weekend.

This is our wave count for the USD/CAD. As you can see, our count shows we are on the 3rd wave of a Zig Zag (ZZ) movement down. We completed the first wave (of the ZZ Wave 3) as denoted by the “1″. After that, we saw the pair go back up to the 61.8 Fibonacci level from the high at Wave 2 and the low of Wave 1.

Have we completed Wave 2?

Right now, we’re in a watch zone. If the pair breaks the top of the highlighted box, we potentially look for a buy. If the pair breaks the bottom of the box (equal to the low of Wave 1), then we potentially look for a sell.

Remember to always consider your own personal risk and apply your money management techniques when trading.

Good luck and we’ll see everyone shortly.