Watching CAD – Oil Going Up

I want so badly to get short USD/CAD for another leg down in the pair – and am watching the price of oil here this morning, as CAD will often correlate.

Regardless of the near term squiggles and “apparent strength” in USD, my eye on the price of oil suggests it’s going higher. Pulling a daily chart of “/CL” Light Sweet Oil Futures – I see our friend “the hammer” made an appearance on Friday suggesting that buyers had stepped in and that downside pressure would subside.

Short and sweet here this morning – but CAD looks strong against several other currencies. Should we see the price of oil move higher “getting long CAD” looks like a very good trade.

Otherwise – we still sit patiently awaiting moves in USD – Question being – Is the recent strength a sign of something new – or merely a “pop” before USD continues lower?

We will get our answer by close tomorrow.

6 Responses

  1. schmederling May 13, 2013 / 10:26 am

    I have gone short AUD/USD this morning squeeze fires on shorter time frames negitive – there could be more follow-through!

    • Forex Kong May 13, 2013 / 10:51 am

      Wow……short AUD/USD after a 600 pip drop – I gotta hand it to you Schmed….you’ve got some cojones!

      • schmederling May 13, 2013 / 11:07 am

        I know but can only trade what’s in-front of me & my system…. I may just cut it short should this trun quickly but right now my system tells me short!

  2. schmederling May 13, 2013 / 11:10 am

    I have stops set if triggered @ 0.9995 if they get hit so be it but right now in this moment I am short!

    • Forex Kong May 13, 2013 / 1:58 pm

      Gotta love it – and looking at the short term – of course…why the hell not – with the stop in place.

      This is the great thing about trading ( for those of you reading along ) as most importantly “risk has been defined!”.

      Schmed already knows / understands what’s at stake should the trade turn against him, and thusly – all power to him!

      There is no “being right or being wrong” – it’s about finding whatever works for the individual – and having a plan.

      Cheers Schmed! – And I hope you kill it on this one!

  3. schmederling May 13, 2013 / 9:15 pm

    Hey if I cAn squeeze 100 pips out of this great – I have been out of the currency trades for week…. thanks for the vote of con Kong same to you on the flip side… all the best Schmed

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