Thursday, March 5, 2009
Good Morning FxTraders. It looks like we are finally rewarded for our patience and getting the USD/CAD sell off today. From this point we need to break on through 1.2765 to get our next leg down. We will also need for the market to help us out with this. If they weaken and go back into a sell cycle our trade will reverse on us so be nimble in your bias here and take profits when you have them. One thing I always look for is a pair that trades divergent or opposite of my focus pair. In the case of USD/CAD that pair is CAD/JPY. So if you have a sell or buy bias on USD/CAD you need the opposite for CAD/JPY. Pull up a chart on CAD/JPY and you will see that when USD/CAD started selling off it rallied off of 76.00 on up to 77.80. In the future I will give you the divergent pairs on every pair I trade. That way you can trade two or three pairs at a time and increase your profit. So until next time, best of luck on all your trades today. Jack Maverick
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