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Tag Archives: USD/CAD
The USD/CAD trading plan for the current market condition is as follows. This pair could begin trending down on the H4 and D1 time frames. Look for a sell signal on this pair in the main session, if it drops below 1.2830, it has pip potential down to the 1.2550 support area, which is noted by the yellow line. This trading plans was prepared using multiple time frame analysis by individual currency, and we are detecting some CAD (Canadian Dollar) strength in the market now. We use this method to analyze 28 pairs for our daily trading plans at Forexearlywarning.
Today in currency trading the Canadian Dollar (CAD) was weak across all pairs. See the live trading signals and alerts below in the images from The Forex Heatmap®. The USD/CAD moved higher but we consider this to be a shorter term trade since the overall trend is down on this pair. The EUR/CAD also moved higher. This EUR/CAD is trending up on the D1 time frame and should continue up to the next major resistance area at 1.4950, see the chart movement for this pair below in the images. The Forex Heatmap® provides live trading alerts for 28 currency pairs in eight currency groups, including the CAD pairs.
In this article we will present a currency strength strategy for forex trade entries and another strategy for market analysis, both strategies work. These two strategies will improve any trader’s understanding of the current market condition, along with more much more profitable trade entries, trade after trade.
Currency Strength Strategy For Current Market Momentum
Measuring the current market momentum in real time is one currency strength strategy. In the example below the USD (US Dollar) was weak on all pairs. This drove significant movement for traders on this day (2-3-2016) on all seven of the USD pairs we follow at Forexearlywarning.com. There was also some minor NZD (New Zealand Dollar) and CAD (Canadian Dollar) strength in the market. So the NZD/USD moved strong to the upside, makes perfect sense. Since the NZD/USD was also in an uptrend at this time, it should continue higher on the D1 time frame to the 0.6800 resistance area.
Also, the USD/CAD dropped and is currently at one support level, so in this case a trader may choose to scale out lots and reduce position size. The EUR/USD also moved up strong on this day and broke out of it’s trading range, now this pair has additional upside on the D1 time frame as well. So you can also plan more trade entries going forward on the pairs that are trending. A phenomenal and profitable day of trading for any forex trader on only one group of pairs, with strong movements. The real time currency strength indicator you see below is The Forex Heatmap®, which provides live buy and sell signals for 28 pairs, including the US Dollar pairs and seven other currencies
Another Example of Intraday Currency Strength
This is another example of how to use intra day currency strength for strong trade entries. This example is from 7-5-2016. On this day the British Pound (GBP) was weak on all pairs, and the Japanese Yen (JPY) was strong on all pairs. This caused a strong sell off on the GBP/JPY. This pair sold off over 300 pips in one trading session, also, the major trend on this pair is down on the larger time frames, so more pips are possible despite this strong trade entry.
Strong signals like this happen routinely on the forex in the 8 currencies we track at Forexearlywarning.com, but since so many traders use technical indicators they always miss the pips. Using easy to interpret visual tools like The Forex Heatmap®, which monitor the strength of the currencies and money flows in real time, you can trade like a pro.
Using Currency Strength for Overall Market Analysis
Currency traders who like our real time currency strength tools can have a big advantage if they use currency strength to analyze the entire market every day. Always knowing the overall condition of the market, based on trends will raise the bar even higher and complete your overall currency strength trading system. Analyzing the market to determine the strongest versus weakest currency takes time but it well worth it, and your reward will be increased pips.
You can set up some moving averages for all of the JPY pairs, USD pairs, NZD pairs, etc. to start. Then drill down the charts daily using multiple time frame analysis. For example if all of the JPY pairs are in up trends, then you know the JPY is weak. Then, if you can find a strong currency to go with it, you are in business to make pips. On the Forexearlywarning website, we show you how to set up the trend indicators, and how to analyze the market by individual currency. This way you will not only be trading in the direction of the daily market momentum, but also with the trend.
Today in the forex market the Canadian Dollar (CAD) was weak across the board, driving movement and trading opportunities on all pairs in the group. These pairs are also trending on CAD weakness, which is dominating movement in the forex market now. The USD/CAD rose and this pair is in a strong uptrend, it should continue much higher. The CAD/JPY also dropped, this pair has almost broken the 87.80 support area to the downside, with plenty of pip potential below there. We will look to continue to plan more trades on these pairs in the direction of their trends. The live signals you see below are from The Forex Heatmap®, which provides live signals for 28 pairs, including the Canadian Dollar pairs.
The USD/CAD has a newly formed up trend on the D1 time frame. The current resistance level is at 1.3150, you can set a price alert here. When the alert hits check The Forex Heatmap® to confirm any buy trades. The next major resistance level is around 1.3400, so there is good pip potential above the alert price of approximately 250 pips. The trend indicators you see are 5/12 exponential moving averages set up on a meta trader platform.
The USD/CAD trend analysis is shown here. This pair is trending higher on the larger time frames, like the MN time frame shown below. The near term resistance level is at 1.3350. Traders can set a buy alarm at that price level and monitor for a buy signal on The Forex Heatmap®. There is no no nearby resistance past the alarm price, we see no resistance until around 1.3800, so this pair has about 450 pips of upside potential. This is very good money management and risk/reward ratio for a trade.
The USD/CAD is trending higher on the largest time frames, like the MN time frame trend shown below. This pair has now broken the critical 1.3000 resistance area, noted in red. There is no nearby resistance past this price the next resistance we can see is at approximately 1.3650, which is also noted in red on the far left. We will continue to follow this trend going forward, setting buy plans and looking for buy signals. If you see a buy signal for the USD/CAD with The Forex Heatmap® in the main trading session, we sould strongly consider buying this pair. The trend charts you see below are 5/12 exponential moving averages we apply to all 9 time frames on metatrader.
Today in forex trading the Canadian Dollar (CAD) strength drove price movement on all pairs in this group. The EUR (Euro) was also weak, so the EUR/CAD pair dropped. This pair is in a strong downtrend but it is at some historical support levels, so we would scale out some lots and take some profit. A some point it should continue lower since the trend is so strong. The USD/CAD also dropped on the CAD strength and this pair is at one support level. The trade signals you see for the CAD pairs below are from The Forex Heatmap®, which is a visual map of the spot forex that provides live signals for 28 pairs.
The USD/CAD is not trending but it is oscillating and ranging on the smaller time frames, see the H1 time frame below. Above the current prices it has around 200 pips of potential to cycle back up to the 1.2625 area, noted by the yellow line. Traders can look for a buys signal on this pair in the main session using The Forex Heatmap®, or after the USD or CAD news drivers, which are both on the news calendar for tomorrow. The trend indicators you see below are exponential moving averages which are easy to set up on most charting platforms.
The trend chart below show that the USD/CAD is trending higher on the largest time frames, like the MN time frame. The current resistance levels is at 1.1670 on this pair. You can set a price alarm here. When the alarm hits, check The Forex Heatmap® for a buy signal. Past the 1.1670 resistance area the next major resistance is at the 1.3000 area, so any buy entries could have substantial upside potential, possibly 1300 pips. The trend chart you see below for the USD/CAD are exponential moving averages set up on a meta trader platform.