A Recap of today's Action in the CDZ09 on 9/29/09

Discussion in 'Financial Futures' started by Rae, Sep 29, 2009.

  1. Rae


    The Canadian Dollar tests the top side of a downward trendline late last night and then falls over .0100 ticks. The CD 5-minute chart shows the quick move up and then the steady march downwards. You will also notice that the area of concentrated volume has widen some. This area of concentrated volume might be a good gauge of technical strength Tuesday night and Wednesday morning.

    In Tuesday's Currency Futures Trading Report I wrote.

    " The CD 60-minute chart (below) shows that the Canadian Dollar is currently testing the 5-day moving average (.9219), which might be a good gauge of technical momentum tonight. Notice that above .9221 there isn't any area of concentrated volume until .9314, which means any run pass .9221 might seem technically more significant or stronger then the move really is.

    If a currency trader is looking at the short-side of the Canadian Dollar then here are two potential ideas. A currency trader that is looking to be aggressive to the short-side could short the Canadian Dollar near the 5-day moving average (.9219), the issue with this aggressive position is the lack of technical resistance above the average. Therefore, a trader could short the market if the Canadian breaks back below the 4-bar moving average on the 60-minute chart and utilize any run back through the average as a technical cue to step out. A trader could also short an isolated pivot bar near the top of the downward channel, if the Canadian Dollar makes an upward push."


    Looking at Tuesday's CD 60-minute chart (above) you can see that the movement of the Canadian Dollar last night was something that I had written about before the actual move. I must disclose, 'past performance is not indicative of future results.' Now, with that being said a currency trader that had read last night's report might have had a good vantage point in regard to taking a shot at the Canadian Dollar. The point is, y strategic perspective is best utilized as a framework of ideas on how a currency trader might navigate the technical structure of a market. My strategic perspective is not supposed to be a play by play on how to enter, manage and exit a position. How a trader enters, manages and exits a trade is personal. Not everyone has the same risk tolerance, account and or time to trade.

    So, where are the important technical battle lines tonight and tomorrow. Where can a currency trader look to get short a long?__

    To get tomorrow's Currency Outlook, send me a Private Message or email by clicking on my user name. It's that simple.

    There is signficant risk of financial loss when trading futures and you should carefully consider whether trading is right for you in light of your financial position.