USD/CAD Technical Analysis: Bank of Canada Provides Breather For Bears

Talking Points:

USD/CAD Technical Strategy: Selling the Rip Remains Favored Play on USD Weakness
Trader Sentiment Favors Further CAD Strength
LT 38.2% Fibonacci Retracement Line at 1.2750 Has Been Hit
The Bank of Canada seemed to have one key point at today’s Bank of Canada announcement, Fiscal Stimulus works. Fiscal Stimulus is synonymous with Government spending in a strategic manner. Given the economic pain from the year-over-year decline in Oil prices, Fiscal Stimulus from PM Justin Trudeau was key in the Bank of Canada holding in January, which put the Canadian Dollar on a rise not seen since 2009, when Oil bottomed before tripling in price and lifting the Canadian Dollar over the next three years. Impressively, the bank said that energy investments will plunge by 60 percent this year from where it was in 2014.

The admitted risk on the horizon per the BoC has stemmed from a stronger Canadian Dollar alongside weaker global growth than expected, but they felt comfortable with rates around 0.5%. Poloz noted that the positive elements in the economy were edging out the negative influences adding that the elements of a recovery are in place.

USD/CAD Chart Shows A Trend That Continues To Hold Within A Bearish Channel

USD/CAD Technical Analysis: Bank of Canada Provides Breather For Bears
Key Support Levels from Here (Visual Map Below)

Even though we hit levels not seen since last Summer, the theme of today’s price action will likely be one of consolidation. The price of USD/CAD has spent a majority of the week trading around the weekly S2 pivot level, which unsurprisingly denotes a strong downtrend. The Weekly S1Pivot level is around 1.2885, and would make for an appropriate level of soft resistance. For now, the strength of the move lower, totaling now around 0.1947 pips given today’s low of 1.2742 to the January top of 1.4689, requires a more significance resistance level. Given the drop off from the 1.3200 level earlier this month, that level would need to be broken on a daily close to favor a more significant retracement.

Regarding support, today’s aggressive move in the morning brought USD/CAD to the key support zone of the 38.2% Fibonacci Retracement level of the 2012-2016 range at 1.2757. Below today’s low, technical focus turns to the June 1 high of 1.2563, followed by the June 18 low of 1.2134. While CAD did weaken during BOC presser today causing a consolidation of the recent sell-off, the longer-term trend would favor a move towards the June 1 & 18 extremes as downside targets.

On the chart below, you can see a 9-year pitchfork that has framed price action well. While price could rip below the median line, which sits at 1.2500, that is an appropriate target for the time being on further US Dollar weakness and CAD strength.



Canadian Dollar Rally Looks Steady per Sentiment

When looking at sentiment, crowd positioning has continued to fight the trend aggressively providing a favor for more downside. We use our Speculative Sentiment Index as a contrarian indicator to price action, and the fact that the majority of traders are net-long at a bull: bear of 1.827 as 65% of traders are long means that a bearish USD/CAD signal is currently at play. This signal has been working itself out since late January. Now that the price has broken below the October low and the long-term 38.2% retracement level, we’ll continue to favor trend continuation toward the June 1 high. A break below these new key support metrics and a move further into positive territory on the SSI would favor further downside towards downside targets mentioned above.

USD/CAD Speculative Sentiment Index as of 4/13/2016

Silver Prices Begin to Outpace Gold - Not a Good Sign for USD

Talking Points:

- USDOLLAR Index continuing to fail against daily 21-EMA.

- Silver tends to outpace Gold (CFD: XAU/USD) during periods of broad strength in precious metals, weakness in US Dollar.

- As market volatility rises, it's a good time to review risk management principles.

Silver prices have started to outpace Gold prices - which if it continues, would be historically good for precious metals and foreboding for the US Dollar. This matters greatly for the USDOLLAR Index, currently battling to uphold support against the September and October 2015 swings lows.

Chart 1: Gold Prices versus Silver Prices (Performance Since Third Week of January 2016)

Recent price action in Silver and Gold is worth watching over the coming days as further gains by Silver relative to Gold could indicate the potential for greater US Dollar declines moving forward.

Chart 2: Silver Prices Outpace Gold Prices to the Upside... (2005 to 2011)

Chart 3: ...Silver Prices Underperform Gold to the Downside (2011 to 2016)

See the above video for trade implications and technical considerations in SPX500, USD/CAD, GBP/USD,Crude Oil, EUR/USD, USD/JPY, and the USDOLLAR Index.

Read more: Now Fueled by Weaker EUR & JPY, Global Equities Run Higher

If you haven't yet, read the Q2'16 Euro Forecast, "EUR/USD Stuck in No-Man’s Land Headed into Q2’16; Don’t Discount ’Brexit’," as well as the rest of all of DailyFX's Q2'16 quarterly forecasts.

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher's e-mail distribution list, please fill out this form

USD/CAD

The US Dollar v/s the Canadian Dollar is a popular currency pair due to the large amount of cross-border trading activity that takes place between The United States and Canada. The Canadian Dollar is often called 'The Loonie' because of the picture depicting a loon on the Canadian $1 coin. The Canadian Dollar is often considered a 'Commodity Currency' due to the large deposits of natural resources, especially Oil that is mined and exported from Canada; particularly with their neighbor to the south.

---

SUPPORT & RESISTANCE

USD/CAD
Silver Prices Begin to Outpace Gold - Not a Good Sign for USD

S1	1.2781	W	R3	1.3404	S
S2	1.2759	M	R2	1.3251	M
S3	1.2750	S	R1	1.2899	W

Trend

Neutral

Volatility

73%

Awaiting Break from Stocks, Dollar Fed Drive, Yen Intervention

Talking Points:

Global equity indexes continued their climb with a few hitting key resistance, but can they break?
US CPI failed to jump start Fed speculation - for better or worse - but the Dollar is looking for drive
The term 'Yen intervention' is being used liberally, and FX traders are anxiously waiting to see if their is action
See the DailyFX Analysts' 2Q forecasts for the Dollar, Euro, Pound, Equities and Gold as well as our favorite 2016 trading opportunities in the DailyFX Trading Guides page.

Between key technical levels, lingering fundamental threats and a backdrop of unnerving volatility; the markets look like a tinder box waiting to go up. Many traders see opportunity in this mix, but the risk this environment commands should be respected. 

Nervous anticipation can quickly turn into violent market moves should a decisive catalyst come along. That said, many of the key sparks that can ignite these crucial themes are vague or don't offer convenient release times. The swell in equity indexes like the S&P 500 to key resistance is steeped in doubt and lacking for a clear, capable lever. 

The Dollar grows restless in its congestion, but the Fed's rate forecasts remain mixed between hawks and doves. A constant threat of intervention on behalf of the Yen has slowly lifted USDJPY and Yen crosses though a genuine move would likely snuff itself out quickly. Then there is oil with its influence over speculative sentiment (bank loans and EM countries), key currencies like the CAD and monetary policy (a key inflation component). 

Life Lessons of Forex

Foreign exchange is the buying and selling of currencies of different countries online i.e through the internet. Yes, the forex is a means of making money through buying and selling of currencies but it's much more than that. It's also a process of leaving life lessons that be virtues or positive depending how one makes use of it. It's not just learn and trade but it also impacts into the life of the trader if one is observant.

In trading forex, one is told to study, study and keep on studying for that is the only way to bring out the best in trading forex. Now, in life we're better off if we allow ourselves to keep on learning new ways of life and the constant face of change so as to continue to grow in all ramifications such as learning news ways and mastering old ways in forex trade.

Also, forex will tell you not to be greedy in as much as it can tempt you to be. And if one can master this very well in trading forex his/her other issues of life will be less troublesome be it personal or public, emotional or financial. For in forex greed leads to disaster. Thus, a trader in forex who had been greedy at one point or the other will understand it means and takes to be greedy and its consequences. For in forex greed leads to loss.

Furthermore, in life we're told to be patient for it's a virtue. And I think there is no better way to learn this than through trading of forex. In forex, one just has to be patient else face the challenges of not being. This is because in forex you're made to set up trading plans that'll be successful and sticking to the plan no matter what, whether you're making a loss or profit. It also teaches how to manage risk taken and this if well-developed can help one to be able to make decisions on other aspects of their lives. Also, the art of money management cannot be forgotten as a good life lesson from forex trading.

Thus, one can say trading of forex is not just about making profits but accepting losses whenever they occur. And that forex trade will not only teach one such lesson as a trader but helps that person to imbibe such good virtues as a human being.

Conclusively, though you may loss some cash in forex you definitely must've gained some wisdom on the affair of life. Thank you.

Forex-foreign exchange is the buying and selling of currencies of different countries online i.e through the internet. Yes, the forex is means of making money through buying and selling of currencies but it's much more than that. It's also a process of leaving life lessons that be virtues or positive depending how one makes use of it. It's not just learn and trade but it also impacts into the life of the trader if one is observant.

In trading forex, one is told to study, study and keep on studying for that is the only way to bring out the best in trading forex. Now, in life we're better off if we allow ourselves to keep on learning new ways of life and the constant face of change so as to continue to grow in all ramifications such as learning news ways and mastering old ways in forex trade.

Also, forex will tell you not to be greedy in as much as it can tempt you to be. And if one can master this very well in trading forex his/her other issues of life will be less troublesome be it personal or public, emotional or financial. For in forex greed leads to disaster. Thus, a trader in forex who had been greedy at one point or the other will understand it means and takes to be greedy and its consequences. For in forex greed leads to loss.

Furthermore, in life we're told to be patient for it's a virtue. And I think there is no better way to learn this than through trading of forex. In forex, one just has to be patient else face the challenges of not being. This is because in forex you're made to set up trading plans that'll be successful and sticking to the plan no matter what, whether you're making a loss or profit. It also teaches how to manage risk taken and this if well-developed can help one to be able to make decisions on other aspects of their lives. Also, the art of money management cannot be forgotten as a good life lesson from forex trading.

Thus, one can say trading of forex is not just about making profits but accepting losses whenever they occur. And that forex trade will not only teach one such lesson as a trader but helps that person to imbibe such good virtues as a human being.

Conclusively, though you may loss some cash in forex you definitely must've gained some wisdom on the affair of life. Thank you.

Forex-foreign exchange is the buying and selling of currencies of different countries online i.e through the internet. Yes, the forex is means of making money through buying and selling of currencies but it's much more than that. It's also a process of leaving life lessons that be virtues or positive depending how one makes use of it. It's not just learn and trade but it also impacts into the life of the trader if one is observant.

In trading forex, one is told to study, study and keep on studying for that is the only way to bring out the best in trading forex. Now, in life we're better off if we allow ourselves to keep on learning new ways of life and the constant face of change so as to continue to grow in all ramifications such as learning news ways and mastering old ways in forex trade.

Also, forex will tell you not to be greedy in as much as it can tempt you to be. And if one can master this very well in trading forex his/her other issues of life will be less troublesome be it personal or public, emotional or financial. For in forex greed leads to disaster. Thus, a trader in forex who had been greedy at one point or the other will understand it means and takes to be greedy and its consequences. For in forex greed leads to loss.

Furthermore, in life we're told to be patient for it's a virtue. And I think there is no better way to learn this than through trading of forex. In forex, one just has to be patient else face the challenges of not being. This is because in forex you're made to set up trading plans that'll be successful and sticking to the plan no matter what, whether you're making a loss or profit. It also teaches how to manage risk taken and this if well-developed can help one to be able to make decisions on other aspects of their lives. Also, the art of money management cannot be forgotten as a good life lesson from forex trading.

Thus, one can say trading of forex is not just about making profits but accepting losses whenever they occur. And that forex trade will not only teach one such lesson as a trader but helps that person to imbibe such good virtues as a human being.

Learn How To Trade Forex

Introduction

Contrary to what every Forex 'expert' out there would have you believe, it's not easy to learn how to trade Forex at all. Trading Forex is one of the most challenging skills you can ever set out to learn, which is especially daunting if you're a beginner just starting out to learn how to trade Forex. If you're finding it hard to learn how to trade Forex successfully right now, you're probably wondering: "Can a beginner make money in Forex trading?" By the end of this article, you'll know what you can do to make money in Forex trading right now.

Can A Beginner Make Money In Forex Trading?

If you have a look around the many Forex websites, forums, seminars and magazines, it seems like everyone's making millions of dollars trading Forex! The thing is, Forex traders love to talk about their winning trades and make themselves out to be wildly profitable traders, but the reality is that only 5% of Forex traders are consistently making money. Yes, even a beginner can make money in Forex trading, but there's a big difference between making money in Forex and making a full time income, achieving financial freedom, and building wealth through Forex.

What Stops Beginners From Making An Income

So what's stopping beginners from making a consistent, long term income from trading Forex? Well, unlike the professional Forex traders working for the big banks and hedge funds, most beginner traders learning to trade Forex aren't paid a full time salary to immerse themselves in the markets. If you're just starting out in Forex, then you've probably got a full time job that you spend at least 8 hours a day on, and a family and social life outside of that. That means that you have a very real shortage of time to get yourself to the level where you can trade like a pro, and believe me, it takes a lot of time and consistent effort.

It takes years of study, practice and real experience in the markets to learn how to trade Forex successfully, and get to the level where you can consistently make money in Forex trading. Not to mention that you'll be taking on, for all intents and purposes, an unpaid part time job that will chain you to your computer while you are trading. It's something that will alienate you from your social circle, and put considerable strain on your family relationships as well. It's no wonder that most traders wanting to learn how to trade Forex will give up within 3 months, and never make money in Forex trading.

What You Can Do To Make Money In Forex Trading Now

So what can you do to make money in Forex trading right now? The best shortcut I know is to buy a proven Forex trading system to do your trading for you. I'm not going to look you in the eye and tell you that you can just go out there and pick any system and make millions, because that's simply not true. Profitable trading systems are rare, and you need to choose very carefully. That said, if you can find a trading system that works, you can overcome the biggest challenges any trader faces while they learn how to trade Forex. You'll be able to gain valuable Forex market experience, preserve your personal relationships and most importantly make money in Forex trading while you learn how to trade Forex.

When you've built up the capital and income of your Forex systems operation, and have gathered up valuable trading experience, you may decide to try out trading Forex for yourself. Regardless of whether you trade with an automatic Forex system in the short, medium or long term, it's a powerful solution that will enable you to make money in Forex trading even if you're a beginner.

Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems over the years for a private hedge fund. Forex trading systems are his passion and expertise, and he has a wealth of helpful resources available for any serious Forex systems trader.

Forex Trading and Forex Trading Signal Service

People tend to have many questions when they are presented with something new, especially when it is related to their money. The following are questions that homemakers frequently ask regarding forex trading and forex trading signal service:

Q1: Is forex trading safe? 
A1: Trading forex is of course safe. The reason is because today more and more country regulates forex market and they enforce strict rules that every forex broker must follow. As a result, we find that only the good brokers stay in the forex trading industry. On a personal level though, it is up to you to determine the safety of your account. If you trade recklessly then you will find that your capital will drain rapidly. Sometimes it is faster to lose money in forex trading than in casino. Therefore, you need to prepare yourself mentally and acquire lots and lots of knowledge or you can choose to go with hiring a good profitable trader and subscribe to his trading signal service. The latter is by far the faster, easier way to trade forex if you have limited or no knowledge about forex at all.

Q2: Can a homemaker succeed in forex trading? 
A2: Of course, you can succeed in forex trading just like other trader. Everyone who trades forex have the same opportunity. In fact, homemakers have more potential to succeed because they have the most flexible schedule and needless to say, they have more time at their disposal than any other newcomer in forex trading. Homemakers usually develop the ability to do multitasking and this is the number one reason they can manage hectic days without a hitch. And actually, people can multitask forex trading if only they know how to do it. First of all, they need to find a genuine forex trading signal service and subscribe to it. Second, just do the things they usually do day in day out. Homemakers don't answer to any boss so they can use their time in any way they want and do the tasks however they want as long as the finish the tasks. This is why homemakers have the most potential to succeed if they know how to manage their abundant time.

Q3: Do I need to have experience in international finance to start trading forex? 
A3: If you decided to trade forex with your own might then you need to go through the learning curve. However, if you join a trading signal service you don't need to have any experience in trading at all. This is why assisted trading is deemed the easiest way to participate in the forex market. Assisted trading is a term used to describe trading using the assistance of a trading signal service.

Q4: Can someone who only graduates from high school trade forex? 
A4: This answer is of course, yes. All you need to do is to find good trader who consistently profit from the market and pay him to let you know what currency pair to trade, when to enter the market and when to exit. If you are humble enough to let someone professional help you then you are fine.

Q5: What do I need to become successful in forex trading? 
A5: You need to have a strong commitment, willingness to learn things and diligently update your knowledge or information. Most people fail because they don't have a strong commitment from the start. Also, many people just don't have the right kind of information or knowledge.

Q6: Do I need to have a high-tech computer? 
A6: Absolutely not. You don't need to have a computer that look like Star Trek or any other alien spaceship. A computer with 512 RAM, Pentium 4 2.67 Ghz, 80 Gb hard disk drive and windows xp is enough for you to be able to trade forex. However you need to know that it is important not to open multiple programs that consume a lot of resources from your computer or heavy program while you are trading forex. In nature, forex software such as Meta Trader 4 (commonly abbreviated as MT4) is very light and does not require computer with high specification.

Q7: Do I need to have a high-speed internet to trade forex? 
A7: Well, it depends on what you mean by high-speed. Generally, an internet connection with 512 Kbps or more is already enough. It doesn't really matter whether your subscription is DSL or cable. However, you need at least 1 Mbps if you want to incorporate scalping method in your trading because some scalping methods require you to trade using a time frame lower than 1 minute. Moreover, scalpers usually trade during active trading hours (session overlaps or session open). Nonetheless, scalping is not a trading method anyone can use. Also, it is important to note that while trading using wi-fi is not prohibited it is far safer to trade using wired internet connection. The reason is because internet connection loss is rare if you are plugged with a cable rather than using wireless connection.

Q8: What is the best forex broker out there? 
A8: Most of today's brokers are good because of the increasing number of regulations that swept the forex trading industry. The list is long but there are paths that you can follow to determine which broker is the best for you. You can choose to use a forex broker that has a presence in your own country because this will reduce the cost of transferring fund to and from your trading account. You can choose to use a broker outside of your country if you are looking for features that your domestic broker doesn't have such as higher leverage or the ability to hedge or trade CFDs. Lastly, you can choose to use a forex broker based on the spread they offer. For whatever trading conditions that you require in a forex broker you will most likely find the broker that will suit your need.

Q9: How much money do I need to have to start trading forex? 
A9: The first thing you need to remember is forex trading is a business and as with any other business it requires a good business plan and enough capital to start. You have to keep reality in check and don't expect to enter the business with $250 and turn it to $1 million in a year. Sure, there are people who can make it but certainly not everyone. Generally, a sum of $10,000 is good to start with but many people usually start with as little as $5,000. 10% monthly return on a $10,000 account is $1,000 and it is $500 on a $5,000 account. Of course, with a solid trading plan, a good forex trading signal has the potential to drive more than 10% per month. However, consistency is what you should seek. If you can make 10% per month consistently you will see that your money will grow to a staggering $309,126.81 in 3 years. That's a growth of 3,091%. so as you can see, 10% is actually great over a span of 3 years. Stick to the goal of 10% per month and you'll reap the benefit in no time.

Q10: What is the best way to trade forex? 
A10: To be brutally honest, the best way to trade forex is by subscribing to a forex trading signal service. Why? The reason is you still have full control of the account but you don't really need to do the entire task needed to be done in trading. This solution is the best because it is practical especially if you are new to forex trading and know little or nothing about forex trading. When you have more experience you can trade by yourself and in the long run, this is the best way to trade forex. However, it will take time to learn the ropes and build your confidence and gain experience. Moreover, you need to consider the costs that will incur by buying trading literatures. Overall, your costs will include time, effort and money. So the wise decision to make is to subscribe to a forex trading signal service first and learn how to trade forex properly at the same time.

Q11: How does a forex trading signal service works? 
A11: The first step is you need to find the service provider that you believe can deliver strong and accurate trading signal. After that, you pay the fee upfront so you can use their service for the next 30 days. The next step is to get familiar with their service and choose the method of delivery for the trading signals. They will then alert you when a good trading opportunity surfaced. Finally, you need to enter the orders exactly as they send and you can stay away from your computer. You will be alerted if the market situation changes so you will be able to protect your profit or even maximize your profit.

Q12: How much time do I need to set aside everyday to trade forex? 
A12: You don't really need to set that much time to trade forex if you are using a forex trading signal service because they will do the analysis and report the result for via email or text message (SMS). All you need to do is check the email or text message that they send which will only take 1 minute to do and then submit the orders from your trading platform. The latter will only take 5 minutes. So in total, you only need less than 10 minutes to trade forex per signal.

Q13: Can I leave my computer when I am trading? 
A13: Honestly, you don't need to stay in front of your computer all day long to trade forex. There are trading methods that are suited for long term trader or medium term trader and those types of trading method do not require you to constantly monitor the market. Moreover, you can use internal function in the trading platform to alert you when price crossed the price you desired. There are also indicators that have built-in alert so you know when price reacts in a certain way calculated by the indicator.

Q14: Is there any proof that a homemaker ever succeeded in trading? 
A14: Well, you won't be able to find out every single one of them on the net. The reason might be that they don't want to be known by the public or the media only hunt real life stories that can increase their media circulation (or attract traffic to their website). However, you will find a few of them if you search using Google. Just use the keyword housewives trading forex or any combination of similar keywords. There are popular stories around the net regarding homemakers succeeding in forex trading and the most popular of them is Ms. Torii from Japan.

Q15: Is there a good forex trading signal service that I can subscribe to? 
A15: Absolutely. There are many forex trading signal services out there but in order to profit, you need to find the genuine one. Of course, it is not an easy task to find it because they all claim to have delivered profitable forex trading signals to many people. In all honesty not all of them can back their claim with real result. Moreover, subscribing to a genuine forex trading signal service alone will not guarantee that you will profit. There are certain things that you can do to optimize the result of your trading. You can go here if you want to read about it.

I hope you can find the answer that you are looking for but more importantly, I hope that the answers can remove your doubt so you can enter the world of opportunities and start making money from the forex market.

Surely, there are a lot more questions than those listed above. However, asking too many questions will not get you anywhere. So instead of asking questions you can use that energy in learning how to do this business properly [http://www.reliableforextradingsignalservice.com/]. Ultimately only the doers will succeed in any business. So remove the doubt, give yourself a chance and take action [http://www.forextradingsignalserviceforhomemaker.info/] because you have the potential to succeed in the trading world.