Usd/cad

What happened today with Canadian Futures, at 7:am 8Sept06
The chart shows heavy selling that start sharp at 7:00am.and
it lasted around 5 minute or so.

I'm using IB charts and IB for trading.

Did Forex CAD/USD reacted in same fashion? or there was some delay, what I'm trying to do is understand how to read level I
quotes to find proper entry/exit points.

For example a nice short position 5 sec before 7.00 would have made around 700US$.

Thanks a lot
MH
 
I dunno, it's not all that irrational long-term. Since 1999, there's been a 91% correlation between the loonie and spot oil prices, for starters, and looking visually at the graphs, the loonie seems to be lagging oil by about 2-3 weeks right now. So the benefits of the oil slump should be coming through soon. Another interesting correlation is -92% with AUDUSD, which is now 225 pips off its peak and trading where it was in April. (And oil is back to March prices, and the Canadian trade surplus is down by over 20%) I'm loaded up, expecting 1.15 by mid-October and 1.17 by Christmas. RBC and Morgan Stanley agree, btw.

Maybe people are reluctant to dive in after what happened in July-August. Maybe they're hanging on to loonies to deal with payables. Maybe they're listening to the gold idiots, who are telling them that no matter what happens, the dollar is going down. Maybe they're looking at charts and projecting straight down to parity. Who knows.
 
Quote from Ivanovich:

Not me. Very bearish dailies. Too scary for my blood. And I smell "silly" in the air again.
More...

lol, I hear you Ivan! - On a long time frame, I think this may be a new Support level.

Ivan and DRT, what do you think of USD/JPY?

Take care,
-Kastro
 
The failure of USDJPY to hold 117.50 was a big deal. This has the pair bearish with targets of 116.50, 116.10 and then 114.60. If 117.50 is regained and we settle above then the breakout could go topside.

With that said....I am buying at 116.20 for a retest of 117.50.

DRT
 
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