Thursday, August 25, 2011
Trend for 25th of August 2011
Hi, market trend analysts and independent traders. Let me talk today a little on eur/cad pair. I discussed it a few days ago and want to come back to it today. If you remember I told you that I expect Canadian dollar to strengthen against Euro and other currencies. I also indicated levels of possible reversal that have to be watched carefully. It looks like eur/cad has reached the point of critical resistance and will go down sooner rather than later.
Friday is the last day of the week and as many reversals happen on this day I think we could see eur/cad start going down today. I do not see any data coming from Canada on Friday, but we have some very important coming from Great Britain and this could trigger moves across the board. EUR/CAD will be influenced too. By the way, gbp/cad has already started moving down sharply and could be a leader in this Canadian dollar strengthening.
Below you see a chart with eur/cad and a support level. If it is broken I believe we are going to see much lower prices in the pair. 1.4100 is the level. If it breaks down we can see a very sharp fall in the security. So, be aware of data from Great Britain (Gross Domestic Product) and data from US (the same data). There will also be Ben Bernanke speaking at Wyoming. This can impact financial markets a lot. So be on guard and not overexposed to too big positions for market can take severe hits during news releases and you might find yourself unprotected against them. Good luck in trend trading and see you tomorrow.
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