USD/CAD Breakout!
Good Morning,
Fundamentals first. The election is still in flux and that keeps the markets in the "unkown stage". Could the incumbents have a leg up? Is that bearish or bullish for the marktes? Claims - the data stinks and is getting stinkier! This keeps the Federal Reserve in play. One interesting point - if Bernanke wants to keep his job, is he closer to Obama or Romney? If Obama, QE is on its way and if Romney, maybe he wants the markets to go down and QE is not on its way! Lots of political events to continue to affect the markets.
Technically, USO is on its lows. We also have SLV moving at new lows and GLD heading that way as well. A chart of USO shows it barely hanging in there:
Past performance is not indicative of future results
Next up, the corresponging currency, the USD/CAD. First on a daily chart and then on a 4 hour chart:
Past performance is not indicative of future results
Past performance is not indicative of future results
Finally, we are seeing USD/CAD break out of its range of about 150 pips from early June. Will oil move to lower prices? That is great news for the consumer, but at what cost?
Keep an eye on CHPM tomorrow - not just the headline number, but the employment and new orders sub-components as well.
Oh yeah, the SPX levels: 1308, 1300, 1270, 1267, 1250, 1200...
Thanks to everyone for your partcipation in the IBFX Webinar: Q2 Review and Q3 Preview last night. It should be posted here shortly.
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
