Wednesday, July 15, 2009
USDCAD Breakout
USDCAD is currently having a breakout! It was rising but then it slowed down. And it was counter-trending for many days, but now it is July 15, 2009 and wham. Let’s see. Canada has been experiencing a downtime for the whole of last month but things cleared up and everything seems OK and stable. Then USD started fluctuating again and that explains the counter-trend.
This can be related with the spring effect. When you press a spring hard between your fingers, it will start to compress and store inertia energy until it can take no more and then when you release, it the spring makes a big jump! And it seems like USDCAD jumped downward. July 14 was about a decrease of 200 pips. Wow.
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