Trading Forex - Trapped Traders® Daily Analysis - Buying The Mighty USD/CAD
Get Mark Chapman's Free Daily Trade Calls - Click here: http://mytotalsupport.com/cpv/base.ph... As always, start your analysis by zooming out so that you get a good view of the different structures and areas on a chart where there may be some traders who are trapped. The trade I’m really interested in today is buying the USDCAD. This pair has been mighty recently with the increase in interest rates in the US and commodity prices, in particular oil, struggling, which is bad news for the Canadian dollar. This pair is in price discovery, having smashed through the 1.4000-level, which makes this a 12-year high. The trap we’re going to look at today is called a trap break pullback, which occurred in this area here as traders trading off that level of resistance have been trapped, as price breaches that level and is traded strongly above that point. What we want to see now is a retracement back into that location in and around the 1.3985 area, which would also coincide with the 50 and 61.8 percent Fibonacci level. Don’t worry that this pair is getting too expensive. I believe the value of this pair is higher up, and this is the type of pullback that I’m very interested in as those traders who were trapped selling at resistance will exit those short positions at break even given the chance. And the transaction that must occur for them to do that is a buy order. With oil taking another look at the lows, down at 34 dollars in the coming days, there’s every reason why the USDCAD will continue to be strong. However, one word of warning. We have the FOMC minutes being released, so just be a little careful around that news event and watch out for any indication of consistent rate increases predicted for the US in 2016. This will further add weight to dollar strength and make this trade even more attractive. Also, from yesterday’s analysis, keep an eye on the NZDUSD. I don’t think we’re going to get back up into the 0.6773 area, which will be the underside of that prior level of resistance and support at the 61.8 percent fib. However, I think we might get into this area up at the 0.6683 to 0.6670-level. If you get a chance to sell this pair, given the strength in the US and the weakness in New Zealand due to the fears about the Chinese economy, I think this still represents a great trade. • Trading Forex - Trapped Traders® Daily Ana... Riskwarning: This video is for general information only and is not intended to provide trading or investment advice or personal recommendations. Any information relating to past performance of an investment does not necessarily guarantee future performance. Forex Traders Daily, including its analysts shall not be responsible for any loss that you incur, either directly or indirectly, arising from any investment based on any information in this video. Please remember derivatives and FX spot carries significant risks and may not be suitable for all investors. Losses can exceed your deposits.
