The trend and the momentum on the USD/CAD is clearly up

Forexmentor.com Forex Trading Price Action

Given that oil is still falling, as is the Canadian dollar, I am still of the opinion that the USD/CAD pair has legs. It seems to be taking a breather now, but clearly the momentum is still up. The pair is meeting resistance at the 100 EMA on the weekly chart, but I expect that is temporary. Price action has breached all three EMAs (50x100x200) to the upside on the daily chart.

The trend is still up on the 4 hour chart. Looking at the 15 minute chart, we have a double bottom in place between yesterday morning and today. I expect upward price action from here. Both ends of the double bottom were good entry points. Both bottoms were facilitated by hammers. Another good entry point would be the 1779 level that I talked about earlier in the week. I would go in there on a buy stop. In other words, let the market prove its direction, before jumping in.

For more gems like these, please consult the members area at www.forexmentor.com

See latest sample AM Review at: http://www.forexmentor.com/sampler/