USD to CAD - Daily Candle Chart 4th March 2009

USD to CAD - Daily Candle Chart 4th March 2009

Now we have to be both brave and patient! The resistance at 1.300 remains intact for the time being, and if you were brave and entered a long position the other day- well done. If you were cautious,  and decided to wait, then you may be right – only time will tell and we could see some volatile price action shortly, first with the ADP figures in the US, and later with the oil inventories which always have a greater effect on the Loonie due to the natural oil reserves held in Canada. So, with all the moving averages pointing higher, a sustained break from the consolidation of the last few months, and strong support below, we must now be patient. Every trade is a balance between the risk and reward, and our chance of success or otherwise. With this trade I feel we have a much better than even chance based on the factors above. If we do break through the 1.3000 and we have an open long position, then we should be in a strong position to make some excellent profits. If on the hand the price move fails at this level, then with a tight stop loss somewhere around the 1.2800 region, our loss will be relatively small, for what I believe is an excellent opportunity based on a technical analysis of the chart.

As I said earlier all the fundamental news for today is in the US markets, and all the latest currency news is now available on the video link, or alternatively on the live economic calendar, and I’m sure your ECN broker will provide the latest live news as it hits the screens.